Unilever is intensifying its focus on India as a key growth engine, with plans to pursue smaller, high potential acquisitions aimed at capturing premiumisation trends and digital commerce expansion. The company’s leadership indicated that India, alongside the United States, will remain central to its global strategy, collectively contributing nearly 38 percent of its overall turnover. Chief executive Fernando Fernandez highlighted that the company is actively evaluating “super growth assets” that can accelerate its presence in fast growing markets while strengthening its footprint in ecommerce and direct to consumer channels.
Rather than pursuing large scale transformational deals, Unilever is adopting a more disciplined capital allocation approach focused on selective bolt on acquisitions. Chief financial officer Srinivas Pathak emphasized that the company will prioritize investments in premium segments, digitally native brands, and D2C models, particularly in India and the US. This strategy reflects a broader shift in the consumer goods sector, where agility and niche brand acquisition are increasingly seen as more effective than large mergers in driving growth and innovation.
The renewed India focus comes even as Unilever undertakes significant global restructuring, including the merger of parts of its food business with McCormick & Company to create a combined entity with an estimated $20 billion in revenue. Notably, Unilever has excluded its India operations from this transaction, underscoring the strategic importance of the market within its global portfolio. By retaining control over its India business, the company is signaling confidence in the long term growth potential of the region despite near term challenges.
Its Indian arm, Hindustan Unilever, has experienced a moderation in growth in recent years due to inflationary pressures, softer demand, and increasing competition from niche and digital first brands across personal care and household categories. In response, the company has been actively reshaping its portfolio through targeted acquisitions and divestments. It recently acquired full ownership of wellness brand Oziva and a majority stake in skincare brand Minimalist, while exiting its minority stake in Wellbeing Nutrition as part of a broader portfolio rationalisation exercise.
At a category level, Unilever is increasing its exposure to home and personal care, which is expected to account for around 67 percent of its overall business. The company is building a $39 billion focused portfolio in this segment, targeting leadership positions in high growth categories such as beauty, personal care, and wellbeing. This shift aligns with changing consumer preferences, where premium products, wellness oriented offerings, and digital engagement are becoming key growth drivers.
From a strategic standpoint, both India and the US offer attractive growth opportunities due to their scale, evolving consumer base, and increasing adoption of digital commerce. Unilever’s emphasis on these markets reflects its intent to strengthen its competitive positioning by combining global scale with localized innovation and targeted investments.
Overall, the company’s approach signals a clear pivot toward a more focused, agile growth strategy centered on high potential assets, premium categories, and digital channels. By doubling down on India and leveraging its strong distribution and brand building capabilities, Unilever aims to capture emerging opportunities while navigating the increasingly competitive and fragmented FMCG landscape.
