Shares of fast moving consumer goods giant Hindustan Unilever Ltd (HUL) surged 4.63% to Rs 2,520 on BSE, a day after the company announced the appointment of Priya Nair as its first woman CEO.
Nair, currently president of beauty & wellbeing at Unilever, will take charge on August 1 for a five-year term, replacing Rohit Jawa, who steps down on July 31. Her appointment comes as HUL has been grappling with sluggish demand, margin pressures, and increasing competition from digital-first and regional brands.
HUL stock has severely underperformed in the past few years owing to growth concerns due to a narrowing distribution moat and growing competition.
Several analysts welcomed the development, calling it a strong positive for HUL. For instance, brokerage firm Nuvama Institutional Equities described Nair’s appointment as a “positive catalyst” for the stock, citing her track record in boosting margins and leading the beauty, personal care, and home care divisions. Global firms like Citi and Investec also supported the move, pointing to her practical experience and clear strategic vision across both rural and urban markets.
HUL has struggled to maintain growth momentum in recent quarters. The company reported 2% volume growth for FY25—the same as the previous year. While its laundry business held steady, categories such as beauty, personal care, and packaged foods saw pressure amid inflation and rising competition. HUL’s volume growth has not crossed 5% in the past six years.
In its research note, Jefferies said HUL’s performance has been “lacklustre for several quarters”, and said It expects Nair to prioritise defending core market share in soaps, beauty and tea, and to double down on premiumisation, portfolio investments, and fixing lagging assets such as Horlicks.
HUL reported a turnover of ₹60,680 crore for FY25, up 2% over the previous year, with an underlying volume growth of 2%. Profit after tax grew 5% to ₹10,644 crore.