India star performer in 2021: Unilever CEO Alan Jope

Mumbai: Unilever global chief executive Alan Jope said business in India - one of its "highest priority countries" - top performers in calendar 2021, growing more than 13% on year with revenues of ₹5.6 billion, or about ₹56,000 crore.

"We have chosen to prioritise the key markets for the future. The US, India and China...and all three of the highest priority countries delivered strong and competitive growth in 2021," Jope said during an earnings call after reporting Unilever's fastest underlying sales growth in nine years at 4.5% globally. "India grew well into double-digits, albeit versus weaker comparators."

The maker of Dove shampoo and Lux soap said growth in India was a balanced split between price and volume amid rising input costs, and that price increases may continue this year. It may, however, tweak pricing if market shares are threatened.

"We stepped up pricing in India during the year, while maintaining positive volume," Jope said.

Pricing and savings actions will continue to be important as commodity prices remain elevated, he said.

"In the coming months, we will be playing the trade-off between leading on pricing, protecting the P&L (profitability) of the business, and maintaining competitiveness," Jope said. "We will lead pricing...and where competitors don't follow (in hiking prices) and we start to see an erosion of our competitiveness, we will roll that back. Remaining competitive is our top priority."

India is Unilever's second biggest market after the US.

The US, India and China represented nearly 35% of the London-headquartered consumer good multinational's turnover in 2021, and are forecast to account for 60% of global economic growth by 2030.

Unilever said nearly 75% of its portfolio in India gained share during 2021 despite price increases.

Nearly a third of Hindustan Unilever's overall business comes from affordable price points such as Rs 1, 5 and 10, where pricing remained unchanged but grammage was reduced, which in turn impacted volume.

The Indian fast-moving consumer goods market expanded 16% in value during 2021, the fastest in nine years, largely driven by price hikes and a low base in the pandemic year of 2020.