Unilever to sharpen India play with premium & q-comm push

Kolkata: Consumer goods giant Unilever is aiming to raise the revenue contribution of its two anchor markets-the US and India-to 45% from the current 33% over the medium to long term, chief executive Fernando Fernandez said.

The Indian unit, Hindustan Unilever (HUL), is reshaping and investing in its product portfolio to prepare for the future, with a sharper focus on premium offerings and an expanded presence in digital commerce, he said.

Addressing the Consumer Analyst Group of New York Conference 2026 on Wednesday night, Fernandez said around 42% of HUL's portfolio in India is currently positioned in premium segments, a share the company plans to increase to 50% to drive profitability, while accelerating digital commerce.


The US contributes about 21% to Unilever's global sales, while India accounts for 12%. Quick commerce currently makes up around 3% of HUL's revenue but is growing at more than 100%, he added.

"India is our second largest operation, close to ₹7 billion, very successful historically," he said. "But we are very conscious that the portfolio that brought us to a huge position of leadership in India is not necessarily the portfolio that will propel us into the future. We will make the changes and invest there to ensure that we have a portfolio that is suited for the channels of the future." HUL posted 6% growth in consolidated sales to ₹16,235 crore in the December quarter with 5% underlying sales growth and 4% volume growth. The company has restructured its leadership deck, led by a new CEO Priya Nair.

Unilever chief financial officer Srinivas Phatak said the company's ambition in India is to deliver mid-single-digit volume growth, along with a "modest margin improvement", while reinvesting more than 21% of local turnover. To bridge gaps in its product portfolio, Unilever will deploy "inorganic capital" in India via acquisitions, making India and US the only markets where the company is scouting for deals, he said.

"We want to segment the country (India) by affluence and therefore have the right product brand channel combination to cater to that...(and) make our brands more contemporary through social and digital than the sassy framework (Unilever's marketing model aimed at building brand desirability)," he said.

Phatak said HUL's other strategic priorities include doubling down on fewer bets, deploying disproportionate resources to capture value in chosen segments. The company will also build India-specific capabilities in areas such as media and R&D, complementing Unilever's global strengths to sharpen its proposition. HUL is also simplifying its organisational structure to drive growth and enable quicker shifts.

The parent company's leadership said about 85% of HUL's business operates in categories where it is the market leader. According to Phatak, HUL commands a 55% share in hair care-3.5 times that of its nearest competitor; a 37% share in skin cleansing-2.5 times higher; and a 51% share in dishwash-four times that of the closest rival.

"US has delivered 4% (sales growth) consistently for the last three years. India is coming back into the game. Even if there is a bit of a recalibration between the two markets, there are high levels of confidence for us to then say we will be able to get this number and do better," said Phatak.