HUL Bets on Q-Commerce, Premiumisation to Boost Revenue for British Parent

Hindustan Unilever Ltd is expected to sharpen its focus on quick commerce and expand its premium product portfolio as its British parent Unilever looks to grow revenue from the region. The plans were outlined by Unilever’s management at the Consumer Analyst Group of New York Conference 2026 on February 17.

"We have identified the US and India as the two clear anchors of our portfolio. They currently represent 33% of our business, and we intend to grow that to 45% over the medium to long term," said Unilever CEO Fernando Fernandez, adding that HUL is its second-largest operation, generating close to €7 billion in revenue.

"While historically very successful, we recognise that the portfolio that built our leadership position may not necessarily drive future growth. We are therefore investing to ensure it is aligned with emerging channels in India, including premium offerings and digital commerce," Fernandez said.

Currently, India contributes 12% of its overall revenue. The move comes after HUL recently shuffled its leadership in India, with Priya Nair appointed as the new CEO. The unit reported ₹15,614 crore in the December quarter, though its net profit fell 15% to ₹2,590 crore.

Unilever’s Plan for HUL

Quick commerce currently accounts for 3% of HUL’s revenue, as per Unilever’s management, "but is growing at over 100%, with the company focusing on premium offerings and improved availability across digital channels to capture emerging demand trends."

"We hold market-leading positions across categories, with nearly 85% of our business ranked number one. Our hair care segment has a 55% market share, over three-and-a-half times that of the nearest competitor; skin cleansing stands at 37%, and dishwashing at over 51%, both significantly ahead of peers. Over the past decade, the business has consistently delivered 4% volume growth," Unilever chief financial officer Srinivas Phatak said.

He added that per capita consumption in India’s category stands at about $54, offering a sixfold opportunity compared to China and fourfold compared to Indonesia, positioning the market for exponential growth.

"As consumers upgrade from mass to premium products and from general to modern trade, we are well positioned to capture long-term value, supported by growing quick commerce partnerships, which now account for 3% of the business and are expanding at 100%," Phatak added.

He said the company’s portfolio mix across power brands and geographies remains a key growth driver, with the potential to deliver 20–25 basis points of margin expansion. Ongoing productivity gains, supported by buying efficiencies, technology integration and strategic partnerships, are further strengthening competitiveness across markets.

Unilever invests around $1.5 billion annually in capex, with nearly half allocated to productivity initiatives. Despite a four-year payback period, these investments could drive 25–30 basis points of gross margin expansion.

The company is also accelerating its digital shift, with over 100% of incremental investments directed towards power brands in beauty and personal care. Its rapid ROI tool, already live in the US and India, is helping measure digital spend effectiveness and will be expanded to seven key markets this year.