Hindustan Unilever (HUL), the country’s largest consumer goods company on Wednesday said it planned to invest up to Rs 2,000 crore over the next two years to expand manufacturing capacity in fast-growing premium segments across its beauty & wellbeing and home care liquids categories.
The move reinforces HUL’s strategy of backing “fewer, bigger, but bolder bets”, as articulated by CEO & MD Priya Nair, while doubling down on high-growth demand spaces. Nair has said that she will prioritise both volume growth and premiumisation in FY27.
Strategy of Scale
High-growth demand segments, according to the company, includes categories such as premium skincare, haircare and liquid-based personal and home-care products. The latest investment will be spread across multiple locations and is aimed at scaling up production of these categories while sharpening responsiveness to shifting consumer preferences, it said.
“This investment reflects our strategic focus on scaling our brands and creating categories of the future to meet evolving consumer needs. It also underscores our commitment to building a resilient, technology-enabled supply chain,” Nair said.
During HUL parent Unilever’s analysts call last week, CEO Fernando Fernandez had said that the company was “doubling down” on beauty & well-being and personal care as part of its overall growth push.
“When it comes to our growth priorities, the US and India are clear anchor markets for Unilever. Across segments and channels, the focus will be on premiumising the portfolio and further increasing our exposure to e-commerce,” Fernandez said.
Digital Agility
HUL said the manufacturing expansion would be powered by advanced automation and digital technologies designed to boost supply-chain agility and efficiency. The company expects the upgraded network to help it serve emerging retail channels and fast-growing product formats more quickly, a crucial advantage as premiumisation reshapes India’s FMCG demand curve. The company derives 3% of its overall sales from quick commerce, which is amongst its fastest-growing retail channels.
Flagship brands such as Clinic Plus, TRESemme, Lakme and Vaseline anchor the company’s fast-growing beauty & wellbeing segment, which contributes 21% to HUL’s over Rs 60,000-crore topline. Home care, led by brands such as Rin, Wheel, Surf Excel and Vim, remains the largest segment for HUL, contributing 37% to turnover.