Unilever is ready to defend its position as the market leader in India, signalling plans to invest heavily and consider acquisitions as competition intensifies. With a strong foothold in home and personal care segments, Hindustan Unilever (HUL), the company’s Indian arm, aims to grow by 4-5% in volume as India’s economy continues to expand.
Unilever’s Chief Financial Officer, Fernando Fernandez, emphasized the company’s commitment to maintaining its dominance during the Bernstein Strategic Decisions Conference, stating, “We have established very strong positions and are committed to defending India. I will not hesitate to invest hundreds of millions to protect our market leadership.” He also hinted at potential acquisitions to strengthen HUL’s standing in the face of increasing competition from regional and digital-first brands.
HUL remains a dominant force in India, contributing over 11% to Unilever’s global sales, making it the second-largest market after the U.S. The company leads in key categories such as soaps, shampoos, detergents, and skincare, commanding a 35-50% market share. HUL is also the country’s largest tea and malted food drink producer, although in categories like oral care and coffee, it holds the second-largest share.
Fernandez acknowledged the rising competition but remained confident, saying, “We will invest in acquisitions, if necessary, to reinforce our already powerful position.” He also highlighted HUL’s growth trajectory, noting that the company gained 200 basis points in market share since the COVID-19 pandemic, despite pressure from regional players and local brands offering lower-priced alternatives.
Unilever’s strategy for continued growth includes a focus on premiumization and diversifying distribution channels. Ecommerce, in particular, is emerging as a crucial growth driver, growing three times faster than traditional brick-and-mortar stores. The company is optimistic about India’s potential, with Fernandez stating, “India for Unilever in the last 10 years has been what China was for some of our competitors in the last 15 years.”
As HUL’s premium portfolio rises, now contributing nearly 35% of sales compared to less than 20% a few years ago, the company is poised to capture further market growth. With the Indian economy expected to grow by 5-6%, Unilever is determined to increase its volume by 4-5%, remaining laser-focused on expanding its market share.