What is the road ahead for Hindustan Unilever as FMCG major gets first woman CEO?

Hindustan Unilever, the largest fast-moving consumer goods (FMCG) maker in the country, is getting a new chief executive and the first woman to lead the maker of Surf detergent and Bru coffee.

 

Priya Nair takes over as MD and CEO from August 1, with incumbent Rohit Jawa, who has been at the helm since 2023, stepping down to pursue the next chapter in his professional journey.

 

Nair has been with HUL since 1995 and held several sales and marketing positions across home care, beauty and wellbeing and personal care businesses, going on to become the global chief marketing officer, beauty and wellbeing at parent Unilever. Since 2023, Nair has been president,  beauty and wellbeing, which is among Unilever's fastest-growing businesses.

 

Nair takes over as MD and CEO of HUL at a time when the FMCG sector has been battling headwinds in the form of sluggish urban consumption, while rural markets have been slowly picking up.

 

But the sector may be on the cusp of a revival, with several analysts starting to turn bullish on the sector. The expectation is that the income tax relief announced in the Budget and interest rate cuts, coupled with a good monsoon, should boost consumption. Additionally, the 8th pay commission implementation, which will lift salaries of government employees, should also provide a massive boost to sales of consumer goods.

 

"Looking ahead, growth momentum is expected to be supported by monetary policy easing, income tax benefits, a healthy monsoon outlook, and government measures aimed at boosting disposable incomes, which could uplift consumer sentiment and drive demand recovery by the second half of FY 2026," said analysts at Axis Securities.

 

India's beauty and wellness industry has seen the entry of several new players in the last few years, from Mama Earth to Sugar Cosmetics and the emergence of dedicated e-commerce platforms like Nykaa.

 

Driven by this rapidly growing market, HUL acquired premium beauty brand Minimalist in January this year. Nair's experience in this segment should help HUL expand this segment, which is already seeing strong tailwinds. By 2028, the beauty market in the country is expected to reach $34 billion.

 

Another change on the anvil is in the foods business. HUL earlier this year decided to carve out its ice-cream business into a separate entity in line with Unilever's global plans to spin off the ice-cream business. This transition should take effect in the coming quarters.

 

Premiumisation is another big trend that is reshaping the industry.

 

HUL shares are down over 10 per cent in the past two years, vastly underperforming the FMCG index, which is up 8 per cent, and the Sensex has gained 27 per cent in the same period.

 

Nitin Paranjape, the chairman of HUL, put it, "I am certain that with her deep understanding of the Indian market and excellent track record, Priya will take HUL to the next level of performance."

 

Investors will be hoping for the same.

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