HUL invests ₹2,000 crore to boost manufacturing in India
HUL, one of India's leading fast-moving consumer goods companies, has announced a significant investment of ₹2,000 crore aimed at expanding its manufacturing capacity. This investment focuses on the fast-growing premium categories within the beauty and wellbeing, as well as the home care segments. The company’s board approved this strategic move during a meeting on Wednesday, reflecting its commitment to enhancing production capabilities in key areas.
The investment will take place over two years and will be executed across various locations in India. HUL plans to leverage advanced automation and digital technologies to improve supply-chain efficiency and agility. This approach aligns with the company’s strategy of emphasizing larger investments in high-demand sectors, particularly in premium skincare, haircare, and personal care products.
With popular brands like Dove, Lakmé, and Surf Excel in its portfolio, HUL is determined to adapt to the evolving consumer landscape. The CEO and Managing Director, Priya Nair, stated that this investment underscores HUL's focus on scaling its brands and creating future-ready categories. It aims to build a robust manufacturing network that can effectively cater to emerging market trends and high-growth formats.
India is a crucial market for HUL, contributing significantly to Unilever's global sales. According to the Unilever CEO, India and the US are primary "anchor markets," highlighting the importance of the Indian consumer goods sector. Recently, HUL reported a 5 percent underlying sales growth, driven by a 4 percent increase in underlying volume, showcasing the company's resilience even in challenging market conditions.
This investment is not just about numbers; it represents HUL's commitment to innovation and customer-centric strategies. By enhancing its manufacturing capacity, the company aims to respond swiftly to changing consumer needs while maintaining high standards of quality and efficiency. With this bold step, HUL is poised to strengthen its position in the competitive FMCG landscape in India.
