Unilever CEO: India is blueprint for emerging markets growth

Unilever's global chief executive, Fernando Fernandez, has stated that Hindustan Unilever's performance provides a blueprint for the parent company to replicate across its emerging markets worldwide. Emerging markets account for 62% of Unilever's total revenue.

Fernandez made the remarks at the Barclays Global Consumer Staples Conference in Boston. Following the separation of its international foods business, HUL will contribute approximately 17% of Unilever's revenue and is seen as a key future growth driver. "Many companies are discovering where India is on the map. We know the map of every zip code in India," Fernandez said.

HUL's growth drivers in India

Speaking at the same conference, Hindustan Unilever CEO Priya Nair outlined the company's key growth strategies. These include bolt-on acquisitions like the skincare brand Minimalist, a sharp focus on quick commerce, and influencer-led marketing initiatives.

Nair highlighted quick commerce as a structural advantage for HUL, arguing that the business model favours large, established brands. She stated that profitability in the quick-commerce channel outpaces both modern and traditional retail, creating a favourable margin profile for the FMCG major.

Strategic focus on quick commerce

In February, HUL established a dedicated quick-commerce entity to sharpen its focus on the segment. This structure means the quick-commerce lead reports directly to the HUL sales head, a move designed to enable faster decisions and sharper execution. Quick commerce accounted for about 3% of HUL's total revenue as of February.

At its Capital Markets Day on 4 September, HUL management presented its 'Winning in New India' (WINI) strategy to align its portfolio with evolving consumer trends. The company plans to increase its capital expenditure to 3% of turnover, up from about 2%, to drive sustained, volume-led profit growth.

Market performance and outlook

HUL's stock hit a 52-week low of ₹1,936 on 9 September before closing at ₹1,942. Over the past year, the stock is down 26.38% on the National Stock Exchange, compared with a 5.78% drop in the benchmark Nifty 50 index.

Analysts at Yes Securities wrote in a 6 September report that they expect near-term operating performance to be driven by improved volume momentum. They also anticipate margins will be maintained at least at current levels, led by price hikes and savings.