 "Nitin Paranjpe")
Hindustan Unilever (HUL) expects to see an improvement in market conditions in the near and medium term aided by several factors like the agricultural sector, reduced inflation and changes in taxation, Nitin Paranjpe, chairman of HUL, told shareholders during annual general meeting (AGM).
“(In) FY26, we do believe that in the near term and the medium term, we should see an improvement in market conditions because of several reasons: macro conditions are getting better. The agricultural sector and produce has been better and also there’s the expectation that this year’s monsoon is likely to be better,” Paranjpe said, while answering shareholders’ questions at the AGM.
He added, “Inflation has been coming down, and that helps, and those are the things as a result of which the rural economy should continue to do well. But the reduced inflation, along with the taxation changes that have taken place puts more money in people's pockets. Also, some changes in the monetary policy, all will benefit the economy and the sentiment in this market, as a result of which we should see an improvement, a gradual improvement, but an improvement nonetheless, in the overall environment.”
Paranjpe said that despite global uncertainty and slowing growth, India remains one of the fastest-growing economies, projected to grow at approximately 6.3 per cent during the financial year 2026 (FY26).
“What India may have lacked in physical infrastructure having missed out on the first, second and third industrial revolutions the nation is making up for during the fourth industrial revolution with the kind of digital public infrastructure (DPI) it has created. Countries worldwide are seeking to replicate India’s open network models, such as Aadhaar and UPI. Indeed, digitisation and the nation’s DPI could be its greatest future advantage” he said.
India is advancing in digital commerce through the Open Network for Digital Commerce (ONDC), he said.
“ONDC operates on the same principles as other DPI frameworks, aiming to bring sellers and buyers onto a single platform creating opportunities for all. From local kirana walas to the largest retailers, everyone can leverage the network, allowing consumers to choose freely, levelling the playing field like never before,” he said.
But it was easier said than done, he added. “Getting the country’s over 12 million sellers and resellers to leverage e-commerce and improve India’s e-retail penetration from the current 4.3 per cent is a tall order.”
He added, “Projections indicate ONDC’s e-commerce Gross Merchandise Value (GMV) is expected to grow to a massive 30 per cent of the total e-commerce GMV by 2030, potentially reaching $1 trillion.”
While talking about artificial intelligence (AI), he said that it was accelerating India’s next growth phase and also said that India’s finance minister recently said that industries adopting AI are most likely to propel India into becoming the world’s third largest economy.
While talking about the consumers, Paranjpe said that they are more aspirational, with sentiments, tastes, and preferences evolving rapidly with every click or scroll on social media. ALSO READ: HUL chairman urges India Inc to drive inclusive, eco-friendy growth
He said that HUL has become more obsessive about sensing what consumers want and need, and delivering at the right place and time.
On supply chain, Paranjpe said that HUL was digitising its supply chain to ensure a steady supply of its products for its consumers. He also spoke about the evolving non-linear shopper journey across traditional, modern and online trade, and added, “To ensure a seamless experience both offline and online, we are leveraging advanced technology stacks and creating a singular data lake for better decision-making and execution in the marketplace.’
On the demerger of the ice cream business, Paranjpe told shareholders that the category in India is attractive and is growing and is likely to continue to grow.
He said that there are some aspects of the category which makes its different from other parts of HUL’s existing business. Paranjpe said that the ice cream category has a very distinct go-to-market operation and requires cold chain infrastructure due to which it has little synergies with the rest of HUL’s business.
He also pointed out that the business has seasonality and is far more capital intensive that other categories that the maker of Lux soaps operates in.
