India emerges as key market in personal care as Unilever’s business reports strong growth
30 Jan 2023 --- Unilever is spotlighting India as one of the “world’s fastest-growing markets” for consumer goods. Its business in India – Hindustan Unilever (HUL) – is reportedly present in nine out of ten households in the country. HUL’s quarterly results ending last December revealed an increased turnover of 16%, with an underlying volume growth of 5% and 12% profit-after-tax growth.
“The Indian consumer is evolving fast. More people are entering the middle class, the working population is growing and urbanization is increasing, along with the rapid adoption of technology,” the FMCG giant says.
“In recent years, HUL has seen strong results from several premium ranges such as Vim’s antibacterial dishwash, Lifebuoy’s hand hygiene products and health drinks from Horlicks that are designed to support specific nutritional needs such as diabetes.”
Unilever adds that its Premium Beauty business unit is also up and running, with digital-first brands including Simple, Love Beauty & Planet and Baby Dove.
According to the national investment promotion and facilitation agency Invest India, the country’s beauty and personal care product market is valued at US$26.8 billion and is poised to reach US$37.2 billion by 2025.
HUL financial report
HUL brands such as Lifebuoy, Clinic Plus, Dove, Sunsilk and Lakmé are highlighted as drivers strengthening Unilever’s position in the country.
“Lakmé cosmetics, Kissan peanut butter and Bru coffee are among what we call Unilever’s ‘local jewels’ – brands that are particularly popular in one key country,” the company shares.
While the Home Care segment delivered 32% revenue growth, Beauty & Personal Care grew 10%. The company reports that delayed winter impacted growth in skincare. However, the non-winter portfolio delivered double-digit growth driven by continued focus on innovations and market development actions in emerging and on-trend demand spaces.
Lakmé cosmetics, Kissan peanut butter and Bru coffee are called Unilever’s ‘local jewels.’
“Sustaining our strong momentum, we had yet another quarter of solid all-round performance delivering double-digit revenue and earnings growth,” says Sanjiv Mehta, CEO and managing director at HUL.
“Looking forward, we are cautiously optimistic in the near term and believe that the worst of inflation is behind us. This should aid in a gradual recovery of consumer demand.”
“We remain focused on managing our business with agility and continue growing our consumer franchise while maintaining margins in a healthy range. We stay confident of the medium to the long-term potential of the Indian FMCG sector and HUL’s ability to deliver consistent, competitive, profitable and responsible growth,” he states.
Exploring Indian market
According to Invest India, India’s hygiene market is expected to reach US$15 billion by 2023. Unilever, P&G and L’Oreal are touted as the major investors in the country.
Invest India is a non-profit venture under the Department of Industrial Policy & Promotion, Ministry of Commerce and Industry, Government of India.
The agency reports a 26% growth in personal care and hygiene exports in the last four years. Additionally, India claims to control 22% market share in the APAC region.
Regarding what makes India a unique market in the world, Unilever shares: “India has nearly 800 million internet users and the highest mobile data consumption per user in the world.
This rapid digitisation has transformed the market and teams at HUL are leading a future-fit agenda designed to redefine how the business uses technology to operate, engage with consumers and leverage the power of data.”
Edited by Radhika Sikaria
