Muted sales spur leadership change, Priya Nair to lead HUL's growth reboot

HUL appoints Priya Nair as MD & CEO effective Aug 1, replacing Rohit Jawa after his short two-year stint; move signals Unilever's push for stronger growth and leadership stability in India

In a major leadership shakeup at Hindustan Unilever Ltd (HUL), Priya Nair has been appointed as the company’s first woman managing director and CEO, effective August 1. The move marks a decisive shift in HUL’s top leadership just two years after Rohit Jawa took charge. Jawa’s unexpectedly short tenure — the briefest in the company’s history — has ended amid concerns over sluggish sales growth and strategic missteps.

 

The leadership transition comes at a critical time for HUL, India’s largest consumer goods firm and the second-biggest market for its parent, Unilever.

 

Global signals, local impacts

 

In 2023, Hein Schumacher and Rohit Jawa took charge as CEOs of Unilever and HUL, respectively, with a shared goal — to pivot from price-led growth to volume-led expansion. At the global level, Schumacher was also tasked with cost-cutting and restructuring Unilever’s business.

 

 

However, Schumacher’s abrupt exit after just 18 months sent a strong message across Unilever’s global markets: sustained underperformance would not be tolerated. In India, the expectations were even higher, considering the benchmark set by Jawa’s predecessor, Sanjiv Mehta. Under Mehta, HUL more than doubled its revenues to ₹58,000 crore and gained market leadership in key categories like soaps, shampoos, and skincare, The Economic Times reported.

 

A tepid two-year run

 

Jawa’s two-year stint added only ₹2,500 crore in sales, a significant drop compared to the ₹13,500 crore added in the previous two years. HUL executives say this performance gap prompted Unilever to act quickly, the news report said.

 

Jawa had aimed to boost sales volumes, even if that meant lowering profit margins. During his tenure, volumes rose just 2 per cent, and the company’s operating margin target was slashed to 22–23 per cent, over two percentage points below its earlier averages. Meanwhile, HUL’s share price fell by 10 per cent, the news report said.

 

Nair seen as steady, aggressive hand

 

Priya Nair’s appointment is being widely welcomed within the company and by investors. A longtime HUL executive, Nair is credited for her deep understanding of the business and internal systems. Her biggest task ahead will be to drive volume-led growth while expanding HUL’s premium product portfolio, especially in the beauty and wellbeing segment — HUL’s most profitable business in India, the news report said.

 

Challenges ahead: Growth, digital, trade relations

 

HUL’s challenges go beyond leadership. A former director said the company must now focus on growing its core business in line with the market, ramping up premium and digital products, and reducing attrition — all while managing margins, as per The Economic Times report.

 

Adding to this, HUL has faced criticism from its distributor network. The All India Consumer Products Distributors Federation (AICPDF) welcomed the leadership change, calling it “long overdue” after three years of turmoil. It said the company’s policies under Jawa led to a disconnect with its core retail and distributor base, damaging long-standing relationships, the news report said.

 

Despite the uncertainty, Nair’s appointment has been met with optimism. On Friday, HUL shares rose 4.6 per cent, signalling investor confidence in her ability to revive growth and restore market momentum.