Hindustan Unilever (HUL), a leading player in the fast-moving consumer goods (FMCG) sector, is set to enhance its media expenditure and elevate digital advertising efforts to propel the growth of its key brands. Managing Director and CEO Rohit Jawa has identified ‘Lifebuoy’, ‘Glow & Lovely’, and ‘Nutrition Drinks’ as core portfolio brands needing improved performance.
Jawa has outlined HUL’s strategic initiatives aimed at bolstering brand performance over the next quarter. These initiatives include increased media spending, extensive digital advertising, and product relaunching. The company’s ‘Personal Care’ segment witnessed a 3% growth, despite a low-single-digit volume decline, as it undertook calibrated pricing actions in response to commodity inflation.
Challenges in Nutrition Drinks Segment
HUL faced challenges in its nutrition drinks segment, with brands such as Horlicks experiencing a decline in turnover during the fourth quarter of fiscal year 2025. This downturn was attributed to ongoing category headwinds and the transitional impact of changes in pack-price architecture.
Chief Financial Officer Ritesh Tiwari remarked, “Over the last few years, we have been able to increase penetration by unlocking access while also strengthening market leadership. However, we have been unable to drive consumption as the overall category witnessed a drop in average household consumption. We are taking actions to address this category headwind and improve performance.”
Strategic Distribution Balance
HUL is also focusing on meticulously balancing its distribution strategy between quick commerce (q-commerce) and traditional Kirana stores. Recognizing the growing consumer preference for q-commerce, the company has nearly doubled its assortment to comprehensively meet diverse consumer needs.
Moreover, HUL has developed a distributor-inclusive model for Kirana stores, empowering traditional trade with any-time ordering capabilities and enhanced transparency for retailers. “With a direct value-weighted distribution of 69%, we are now servicing stores that cumulatively sell over 69% value of our relevant categories,” Jawa highlighted.
Financial Performance and Acquisitions
For the fiscal year 2025, HUL reported a turnover of Rs 60,680 crore, with profits reaching Rs 10,644 crore and total income rising to Rs 62,646 crore. The company’s recent acquisition, Minimalist, achieved an annual turnover exceeding Rs 500 crore in FY25. Meanwhile, the health and wellbeing brand Oziva expanded its annual revenue run rate from Rs 100 crore to Rs 400 crore. HUL had acquired a 90.5% stake in Minimalist in 2024 and a 51% stake in Oziva in 2022.
Looking Ahead
HUL’s strategic approach, focusing on digital advertising, product relaunching, and a balanced distribution model, underscores its commitment to overcoming current challenges and driving growth in key brand segments. As the company continues to adapt to market dynamics, it remains poised to enhance its market position and profitability.
Note: This article is inspired by content from https://www.storyboard18.com/brand-marketing/hul-steps-up-digital-advertising-media-spends-to-drive-growth-for-key-brands-63999.htm. It has been rephrased for originality. Images are credited to the original source.