India set to be Unilever's largest market by FY27, says Edelweiss

Company's revenue to touch Rs 77,000 cr, to surpass the US

Hindustan Unilever (HUL) could become the largest subsidiary for consumer goods major Unilever by FY27, surpassing the US unit, currently the biggest for the latter. This forecast has been made by brokerage Edelweiss in a report it released on Thursday, based on a year-on-year estimated growth rate of 9 per cent, the fastest among Unilevers markets.

HUL is already the largest in terms of volume for Unilever, Chairman and Managing Director Sanjiv Mehta had said in a conference recently, with 98 per cent of households in India using one or more HUL brands. About 45 billion units are produced annually at the company's factories across the country, he said, with the firm getting future-ready by putting in place an end-to-end digital transformation programme.

In terms of value, the Indian unit is ranked second after the US, currently contributing nearly 10 per cent to Unilever’s global turnover of Rs 4 trillion. The US now contributes 16.3 per cent to Unilever’s top line.

By FY27, HUL’s revenue, said Edelweiss, would double to Rs 77,000 crore from Rs 38,579 crore it reported in FY19. The US unit, on the other hand, will have a top line of Rs 76,000 by FY27, based on an estimated annual revenue growth rate of 2 per cent. In FY19, the US unit had a turnover of Rs 65,693 crore.

Edelweiss also said HUL could surpass the US unit's top line by FY25 if it acquired more companies by then. 

Under Mehta’s leadership, HUL has wrapped up three key buys — including Indulekha, Adityaa Milk, and GSK Consumer. The latter's merger into HUL is currently on. The company is likely to look at further acquisitions in sectors such as dairy as it looks to fill gaps in its portfolio. In terms of reach, HUL is already the largest in the country, taking its products to nearly 9 million outlets to Dabur’s 6.3 million and ITC’s 6 million stores.