₹20 Billion Investment Planned by HUL to Enhance Beauty, Wellbeing, and Home Care Segments

India’s largest consumer goods company, Hindustan Unilever Limited (HUL), is doubling down on premiumisation as it faces intense competition and margin challenges. The company revealed plans to invest ₹20 billion (approx. $220 million) over two years to scale up manufacturing capacity in fast-growing premium segments.

This strategic investment will focus on categories such as beauty, wellbeing, and home care liquids, reflecting HUL’s commitment to capturing high-growth demand spaces. The announcement comes shortly after HUL reported a 15% decline in quarterly profit, largely due to thinner margins following price cuts to counter competition.

By localising production and expanding premium offerings, HUL aims to balance affordability with aspirational products, reinforcing its leadership in India’s FMCG sector.

Key Highlights

• Investment Size: ₹20 billion ($220 million) over two years.
• Focus Areas: Beauty, wellbeing, and home care liquids.
• Strategy: “Fewer, bigger bets” to strengthen premium portfolio.
• Market Context: 15% quarterly profit decline due to margin pressures.
• Objective: Expand premium growth, improve competitiveness, and enhance consumer value.

This move underscores HUL’s long-term vision of blending premiumisation with localisation, ensuring resilience in India’s evolving consumer market.

Sources: Reuters, Business Recorder, Gold FM News