Global supply chain disruptions and rising packaging costs are creating a favourable growth window for Unilever in India, as constraints faced by smaller local players are expected to support the company’s volume expansion, senior leadership said.
Speaking during the company’s earnings call, CEO Fernando Fernandez noted that shortages among regional competitors—particularly across India and Southeast Asia—are opening up opportunities for the FMCG major to strengthen its market share. He added that such conditions could also make it easier for the company to implement pricing actions going forward.
Unilever highlighted that despite global supply challenges, its diversified and “multipolar” supply chain continues to remain resilient, allowing it to capitalize on gaps in the market.
In India, its listed subsidiary Hindustan Unilever Ltd (HUL) delivered a 6% volume growth in the March quarter, with CFO Srinivas Phatak describing the performance as being of a “very high order.” The company also reported its highest-ever market share in laundry powders during Q1 FY26, alongside strong gains in the fast-growing liquid detergents segment.
While inflationary pressures persist—driven by crude-linked inputs and currency volatility—HUL indicated that certain categories, such as home care, may benefit from these dynamics. The company emphasised its ability to manage pricing and volumes effectively through a wide portfolio catering to multiple price points, even as smaller competitors face supply and liquidity constraints.
Executives described the current environment as a “unique opportunity” for sustained growth in India, which continues to be Unilever’s second-largest market globally after the United States, contributing around 12–14% to total revenues.
The company is also doubling down on emerging channels. HUL reported a two-fold increase in quick commerce sales in FY26, while e-commerce turnover rose 25%. Investments in omni-channel capabilities, alongside expanded general trade reach—now covering approximately 2.3 million outlets—are further supporting growth.
Globally, Unilever reported a turnover of €12.6 billion in Q1 2026, with overall volume growth of 2.9%, reinforcing its steady performance amid a volatile operating environment.