Mumbai, Oct 29: Hindustan Lever, the country’s top consumer goods maker, will post a modest rise in quarterly profit this week as growth in sales of products ranging from soap to tea picks up in a recovering economy, analysts said. The unit of Anglo-Dutch company Unilever is hoping a deeper penetration of the rural market and higher spending in urban areas will drive growth in revenue, which has been sluggish in recent years amid fierce competition.

But its profit growth is unlikely to be spectacular in the next few quarters as it faces extra interest payments on debentures and is not in a position to raise prices. "Disposable incomes seem to have increased substantially, spurring a rise in consumer spending," said Nikhil Vora, vice-president, research at SSKI Securities. "But competitive pressures are still fierce, though unlikely to get much worse."

Asia 's third-largest economy is forecast to grow by seven per cent in the year to March after the best monsoon in a decade boosted incomes in rural areas, home to more than two-thirds of the population. Bureau Report