Fernando Fernandez states that the company will be the main beneficiary of a much more dynamic economic environment in India
Emphasising that the opportunities in India are massive, Fernando Fernandez, the Chief Executive of Unilever, has stated that the company wants Hindustan Unilever or HUL to align its growth path with India’s gross domestic product (GDP). He noted that the government has taken ‘very relevant measures lately’.
“We believe that we will be the main beneficiaries of what will be a much more dynamic economic environment in India. I feel that the Indian government has taken very relevant measures lately. So, GST reduction, personal income tax reduction, interest rate reduction, when the government does something like this, it is because the things in the economy are not right and really, that is what was happening the last couple of years, in which Indian consumption was affected significantly, in three years, by double-digit food inflation,” the CEO said during a fireside chat with JP Morgan.
He added that the country is now seeing food deflation and that is reflected immediately in the GDP growth in India. Talking about the leadership changes at HUL, he noted that the company has brought in fresh faces, including the chief financial officer (CFO) from Hero MotoCorp and the CEO of Britannia as the head of its food business, under the new CEO, Priya Nair.
“They have the mission of really putting our volume growth at similar level to the one of GDP growth. It will take some time, but I am very confident of the opportunity. Our brands are perfectly suited to take advantage of what will be an explosion of wealth expansion,” he noted.
In August, the Fernandez highlighted that Unilever is looking at disproportionate investment in two of its largest markets- the United States (US) and India, emphasising that the momentum is building in India
“We are increasingly set up for success in our two biggest markets, the United States and India. We will invest disproportionately to ensure we get the full benefits of Unilever’s scale and advantaged portfolio footprint in these markets, delivering above group average volume growth,” Fernandez highlighted during the earnings call.
In addition to the increased investment in the two markets, the company’s priorities will be directed towards a greater focus on beauty and wellbeing and personal care. Looking ahead, the company will be strengthening its premium segments and digital commerce, the CEO noted.
