Hindustan Unilever (HUL) Managing Director Rohit Jawa emphasized the need for the company to revamp its strategy to align with the aspirations of a rapidly changing India. Despite being a market leader in multiple categories, HUL’s sales growth slowed to 2% and net profit grew by less than 2% in fiscal year 2024, a significant drop from the 16% and 13% growth in revenue and profit, respectively, recorded in FY23.
Jawa highlighted the necessity for a more agile and innovative approach to sustain HUL’s leadership in the face of evolving market dynamics. “What got us here won’t take us there. The next decade is about meeting the aspirations of the new India through upgrades and offering brands at all price points,” Jawa told ET. He underscored the importance of rapid innovation, faster experimentation, and stronger digital capabilities to keep pace with market demands.
With annual sales exceeding Rs. 60,000 crores, HUL remains a dominant force in India’s consumer goods sector, leading in categories such as laundry, soaps, shampoo, tea, and skincare, while ranking second in coffee and oral care. However, the company faces increasing competition from digital-first brands, local players, and major conglomerates like Tata, Adani, and Reliance, who are expanding their presence in daily essentials and groceries.
In spite of these challenges, Jawa expressed confidence in HUL’s ability to capitalize on India’s consumer growth story over the next decade. He pointed out that HUL’s deep understanding of consumer behaviour, extensive distribution network, and strong R&D capabilities provide a significant competitive advantage.
Jawa also noted the blurring line between premium product consumption in urban and rural areas, with premiumization becoming a key trend across the country. As rural demand recovers and the gap between small-town and urban consumer preferences narrows, HUL is well-positioned to leverage this shift.
Under Jawa’s leadership, HUL is set to navigate the complexities of the evolving Indian market, ensuring it remains at the forefront of the FMCG sector while continuing to meet the diverse needs of its consumers.