Unilever CEO Bets Big on India, Eyes Better Growth in H2 ‘25

Unilever's CEO, Fernando Fernandez, is keeping a close tap on India as a key driver of growth next to America for the fast-moving consumer goods (FMCG) giant. Speaking in a fireside chat with Barclays, the 58-year-old CEO said the demand in India has been slow, particularly due to food inflation that affected more than half of the population. However, the newly appointed CEO of the FMCG giant is pinning hope on the second half of the year for demand to pick up. 

“We need India to grow faster than what it has done recently to be a key driver (of growth) to the ones we have in developed markets and other regions,” said Fernandez, according to the Financial Express. “The market has been softer and food inflation was very significant in India and food inflation affects 80% of the households. The economic environment in India will get better in the second half of the year,” he added.

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Fernandez mentioned that the recent interest rate cuts by the Reserve Bank of India and the fiscal boost given by the Indian government in terms of tax relief to the middle class will help in boosting consumption. In the 53rd Monetary Policy Committee meeting held in February, the RBI Governor Sanjay Malhotra had announced a rate cut by 25 basis points, bringing it down from 6.50% to 6.25%. 

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According to HUL’s exchange filing, the consolidated net profit of the FMCG company increased 18.9% to Rs 2,984 crore in Q3 FY25 earnings due to muted demand. 

“While we keep a close watch on the pace of recovery and the broader economic outlook in the short term, we remain confident of the medium to long term opportunity in the Indian FMCG sector and HUL’s ability to grow competitively,” said CEO and MD, HUL, Rohit Jawa in post earnings call. 

Unilever India isn’t the only FMCG company that had to bear the brunt of the overall consumption slowdown in India, particularly in Q2 FY25. Other FMCG majors like Dabur and Nestle also witnessed a slowdown in demand.