HUL turns to high-growth segments to lift demand

Premium is the watchword for packaged consumer goods major Hindustan Unilever Ltd (HUL), as it unveiled a new strategy on Friday to ride on an expected rise in household income and increasing consumer preference for more expensive brands and products.

- Suneera Tandon

In a presentation filed with the stock exchanges on its 'capital markets day', the company identified six 'high-growth' segments as long-term bets. These segments—premium face care, premium hair care, body wash, home care liquids, condiments and mini meals, and wellbeing—contributed ₹7,000 crore in revenue for the company during FY24, HUL said in the presentation.

The FMCG major expects these addressable markets to double or grow fourfold over the next decade, driven by rising GDP and what it termed "disproportionate FMCG growth".

HUL will focus on transforming its portfolio to "prioritize growth". This includes focus on its core portfolio, "future core" brands that are ripe for premiumization, and chasing future trends via what it calls "market makers".