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Unilever asks HUL to prioritise high-margin growth, boost presence in new-age channels
Unilever CEO Fernando Fernandez, during a town hall meeting with HUL employees on his India visit, stressed that volume alone would no longer be sufficient to sustain growth in a highly competitive market.
HUL reported a 3.8% YoY rise in consolidated net profit to Rs 2,694 crore during Q2 FY26.
FMCG giant Unilever has asked its Indian subsidiary, Hindustan Unilever Ltd (HUL), to sharpen its profitability strategy by accelerating its shift towards higher-margin products and strengthening execution in new-age channels, The Economic Times reported. According to the report, Unilever CEO Fernando Fernandez, during a town hall meeting with HUL employees on his India visit, stressed that volume alone would no longer be sufficient to sustain growth in a highly competitive market. He urged the company to add greater rigour to growth, invest in emerging channels and prioritise profitability over scale-driven expansion.
Fernandez, who also travelled to Tier-II cities such as Lucknow during his visit, reportedly met HUL distributors and encouraged them to push deeper penetration into the company’s vast rural network. HUL currently holds dominant market share in several categories, including haircare, skincare, dishwash and functional foods, with more than 50% share in each and about 45% in laundry.
HUL has one of India’s largest distribution networks, reaching nine million retail outlets, including three million through direct distribution. The company is now expected to step up investments in rapid-growing channels such as quick commerce platforms, digital distributors and new retail formats, as consumer demand shifts beyond traditional trade, ET report mentioned.
In its Q2 FY26 earnings commentary, HUL CEO Priya Nair outlined a four-pillar strategy focused on volume-led profitable growth and building future-ready categories. The strategy includes sharper consumer segmentation across three cohorts—Power Spenders, Premiumisers and Democratisers—modernising and premiumising core brands, accelerating presence in digital commerce (including quick commerce) while strengthening specialist retail, and reshaping the portfolio with disproportionate investments in high-potential categories.
For Q2 FY26, HUL reported a 3.8% YoY rise in consolidated net profit to Rs 2,694 crore, while revenue grew 2.1% YoY to Rs 16,034 crore.
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