Hindustan Unilever (HUL) is facing tough competition from smaller FMCG companies, especially in the soap segment. According to analysts, HUL’s revenue growth has slowed compared to its competitors, driven by the rise of unorganised sectors gaining market share.
Raw material costs for soap have dropped, allowing smaller players to expand. Unilever CFO Fernando Fernandez recently stated that he is prepared to invest millions to defend the company's market position in India if needed. HUL's market share is particularly under threat as local competitors grow at a faster pace.