HUL to Invest ₹20 Billion to Expand Premium Segments
Hindustan Unilever Limited (HUL), the India arm of Unilever, announced plans to invest up to ₹20 billion ($221 million) over the next two years to expand manufacturing capacity in its fast-growing premium product segments. The move aligns with the company’s strategy of focusing on high-growth, high-margin categories while strengthening its presence in premium personal care and beauty products amid increasing competitive pressure.
The investment comes after HUL reported a 15% decline in quarterly profit earlier this month, mainly due to margin pressures and price reductions aimed at countering growing competition from digital-first and direct-to-consumer (D2C) brands. Industry experts note that shifting consumer preferences toward premium offerings and the rapid rise of online and D2C brands are forcing traditional FMCG players like HUL to rethink their portfolios and focus on higher-value categories.
To accelerate its premium push, HUL has been actively expanding through acquisitions. Last year, it acquired premium skincare brand Minimalist, and recently announced plans to purchase the remaining 49% stake in plant-based nutrition brand Oziva for ₹8.24 billion. The company’s parent, Unilever, has also emphasized its focus on premium beauty, personal care, and e-commerce channels, especially in key markets such as India and the United States.
Pic courtesy: google/ images are subject to copyright
