Domestic demand drives India's growth momentum despite challenges: HUL

HUL, which owns popular brands as Surf excel, Dove, Horlicks, Lifebuoy, Lakme, and Brooke Bond is investing decisively in its future, reimagining its business with the consumer at the centre

Hindustan Unilever Ltd (HUL) remains confident about India's long-term growth prospects despite near-term economic challenges, with the FMCG major betting on rising consumption, premiumisation and digital transformation to drive future growth, Chairman Nitin Paranjpe said.

Acknowledging that the near-term environment will continue to present challenges, Paranjpe while addressing the shareholders, said, "India has 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 in the latest annual report.

Paranjpe said HUL, which owns popular brands as Surf excel, Dove, Horlicks, Lifebuoy, Lakme, and Brooke Bond and reaches 9 out of 10 Indian households, is investing decisively in its future, reimagining its business with the consumer at the centre.

 

It is strengthening its portfolio and route-to-market capabilities while embedding technology across operations.

"Our strategic investments in digital-first, science-led brands reflect our ambition to build future growth engines in premium beauty, health and wellbeing," he said.

Technology and data analytics are playing a central role in the company's transformation, with advanced analytics and artificial intelligence being deployed across the value chain, from personalised consumer engagement to building a more responsive supply chain, he said.

"We remain equally committed to building future-ready talent-underpinned by a culture of ownership, learning and adaptability. Together, these capabilities will power HUL's long-term growth," said Paranjpe.

Highlighting India's economic momentum, Paranjpe said economic progress in recent years has been encouraging.

"Our GDP continues to grow among the fastest globally, supported by structural reforms and a policy environment that fosters investment and enterprise," he said.

He identified three key structural drivers supporting India's growth trajectory.

First, India's young and expanding population continues to boost consumption and innovation. Second, per capita consumption levels across several categories remain significantly below global benchmarks, offering substantial growth opportunities.

Third, the country's rapid digital transformation is reshaping consumer behaviour and business models.

"With over 800 million internet users, widespread smartphone adoption and a robust digital payments infrastructure, India is now among the most connected economies in the world. This digital backbone is reshaping how consumers discover, evaluate and purchase products, while also enabling a new generation of entrepreneurs to scale rapidly," he said.

Still India's per capita consumption remains well below global benchmarks though steadily rising, which provides a significant headroom for growth across categories.

"Across Home Care, Beauty & Wellbeing, Personal Care, Foods, millions of Indian consumers are only beginning their journey towards premiumisation," he added.