Fast-Moving Consumer Goods (FMCG) major Unilever, which is doubling down on India as one of its key markets, expects the demand conditions in the country to improve mid-term following “recent fiscal and monetary stimulus,” Chief executive Officer Hein Schumacher said while discussing Q4 results.
The company has stated that it would commit capital to accelerate the beauty and wellbeing business in the country along with its other priorities.
The company’s business in India continued to increase market share with modest market growth. The business in India grew 1.8 per cent with 2.4 per cent UVG, with tonnage volume growth at mid-single-digit, partially offset by adverse mix due to the strong growth in home care versus other categories.
“Since unveiling GAP 2030 towards the end of last year, we have been focussed on aligning the organisation behind the new strategy. We already see the process of ‘strategy into action’ taking effect, under the focus pillar we would double down in India as one of our key markets, and we would look to accelerate our Beauty & well-being business and we would commit capital in support of these and other priorities,” he said.
These came together with the announcement last month that Hindustan Unilever had signed an agreement to acquire the premium beauty brand, Minimalist, said Schumacher. “This is an acquisition that strengthens our position in a high-growth premium demand space in a key market and is one we are very excited about.”
Top 5 countries
India comes under the top 5 countries Unilever has a geographical presence. The other countries include the USA, China, Brazil and Mexico. The company stated that it is expecting the business conditions in India to improve mid-term following the recent fiscal and monetary stimulus.
“We continued to optimise our portfolio, allocating capital to premium segments through bolt-on acquisitions and divesting lower-growth businesses.” said Fernando Fernandez Chief Financial Officer of Unilever.
Hindustan Unilever Ltd announced the acquisition of haircare and skincare brand Minimalist at a pre-money valuation of ₹2955 crore. The company will acquire a 90.5 per cent stake in Uprising Science Private Ltd (owner of Minimalist) through a combination of secondary buyouts and primary infusion with a path to acquire the balance stake in two years.