Unilever CEO says India investment will continue as HUL targets high-single-digit growth

Fernando Fernandez said Unilever will keep investing in India, its second-largest market, to protect leadership. HUL expects high-single-digit growth in coming quarters after reporting 5% volume growth and 10% value growth in Q1 FY27.

— Source publishedWed, 29 Jul, 2026, 07:40 IST·First seen Wed, 29 Jul, 2026, 09:15 IST·Source ET Retail

What happened

Hindustan Unilever · Unilever CEO Fernando Fernandez said the company will keep investing in India, its second-largest market, to defend leadership. HUL expects

Key facts

  • High-single-digit growth expected in coming quarters
  • Profit growth expected to slightly outpace revenue growth
  • Q1 FY27 volume growth: 5%
  • Q1 FY27 value growth: 10%
  • India is Unilever's second-largest market

Why this matters

Unilever’s commitment to India suggests continued appetite for local capability-building, making scalable brands, digital channels and supply-chain partnerships strategically relevant targets.

What to watch

  • HUL quarterly volume growth holding at or above 5% and whether value growth remains near double digits.
  • Advertising and promotion spending trends relative to sales, indicating whether growth is becoming more expensive to sustain.
  • Gross-margin movement from palm oil, crude derivatives, packaging and currency fluctuations.
  • Rural-versus-urban demand trends, especially in mass personal care, home care and foods categories.
  • Market-share performance against large FMCG peers, regional brands and quick-commerce-led challengers.
  • Management commentary on price hikes, grammage changes, premium portfolio mix and quick-commerce contribution.
  • Increase investment behind high-frequency categories, premium formats and rural distribution expansion.
  • Accelerate e-commerce, quick-commerce and direct digital shelf execution to defend discovery and repeat purchase.
  • Prioritize localized innovation and smaller-price-pack offerings to capture value-conscious consumers without abandoning premiumization.
  • Use Unilever’s India investment commitment to expand manufacturing, supplier capability, data infrastructure and talent capacity.
  • Maintain selective pricing while shifting growth messaging toward volume, market-share resilience and category development.