Hindustan Unilever Ltd (HUL) is sharpening its focus on premium products, artificial intelligence-led operations, and targeted investments in high-growth categories as it seeks to accelerate volume-led growth amid an improving consumption environment, Chief Executive Officer and Managing Director Priya Nair said in her first annual letter to shareholders.
Expressing confidence in India’s long-term consumption story, Nair said the FMCG major had entered the new financial year with “sharper strategic clarity, stronger fundamentals, and a clear conviction in the direction we are taking,” even as the broader operating environment remains dynamic.
HUL Chairman, Nitin Paranjpe pointed out that while “the near-term environment will continue to present challenges,” however, India had consistently demonstrated resilience, emerging stronger through periods of uncertainty. “For HUL, with deep roots in the country, we will navigate this environment with agility and discipline—anchored in our unwavering commitment to serve our consumers,” he said.
HUL reported turnover of ₹63,763 crore in FY26, up 5 per cent, with underlying volume growth of 4 per cent. Growth momentum strengthened through the year, with underlying sales growth improving from 3 per cent in the first half to 7 per cent in the March quarter.
Four Priorities
Nair outlined four strategic priorities that will underpin the company’s future growth. These include deeper consumer segmentation, building more desirable premium brands, strengthening its route-to-market capabilities and concentrating resources on a smaller number of high-growth opportunities. According to her, HUL’s objective is to deliver “competitive, volume-led revenue growth” by tailoring products, pricing, and channel strategies to specific consumer cohorts.
A major plank of the strategy is premiumisation. During the year, HUL strengthened its beauty and wellness portfolio through investments in digital-first brands such as Minimalist and OZiva. Nair said these brands are helping the company tap evolving consumer aspirations and build future growth engines in science-backed beauty, health, and wellbeing categories.
Streamlined Structure
To support this shift, HUL had announced investing up to ₹2,000 crore to expand manufacturing capacity in fast-growing premium categories, particularly Beauty & Wellbeing and Home Care liquids. The company has also streamlined its organisational structure, creating dedicated chief marketing and R&D leadership roles and a unified India structure aimed at speeding up decision-making and execution.
Technology and AI are expected to play a central role in the company’s next phase of growth. Nair said artificial intelligence is already helping HUL understand consumers better, personalise engagement and improve marketing effectiveness. Advanced analytics, digital twins, and AI-enabled supply chain tools are also being deployed to create a more responsive and resilient manufacturing and distribution network. Five HUL factories have already been recognised by the World Economic Forum as advanced manufacturing “Lighthouses.”
Nair said the company’s priorities and business fundamentals position it well to “power the nation on the rise.” “What is good for India, is good for HUL,” she said.