Hindustan Unilever (HUL) has unveiled plans to restructure its beauty and personal care business, dividing it into two distinct divisions, to intensify focus on these high-growth segments amidst mounting competition from emerging brands.
The consumer goods giant announced this strategic move in an exchange filing on Friday, stating that the split into dedicated ‘beauty and wellbeing’ and ‘personal care’ businesses will be effective from 1 April, 2024. This decision aligns with the global category structure of its parent company, Unilever Plc.
According to media reports, each newly formed division will have its own executive directors. Harman Dhillon, presently heading skincare, will take on the role of executive director, of beauty and wellbeing, joining the management committee of HUL.
Meanwhile, Kartik Chandrasekhar, the current global vice president for Unilever and head of oral care and skin cleansing for developing and emerging markets, has been appointed to lead the personal care business. Madhusudhan Rao, the current executive director of the beauty and personal care division, has chosen to retire, as confirmed by the company.
“The business model, innovative rhythm and competitive landscape for both beauty and wellbeing as well as personal care are diverging,” remarked HUL CEO and Managing Director Rohit Jawa in a statement on Friday.
He further explained that the transition will allow the company to bring more focus and leverage its robust portfolio in both businesses. According to its annual report, the beauty and personal care business remains “a source of value creation” for HUL, contributing 37 per cent of the company’s overall revenue in FY23.
In the fiscal year 2023, the beauty and personal care segment reported revenue of Rs 21,831 crore, encompassing renowned brands like Lifebuoy, Lux, Sunsilk, Clinic Plus, Dove, Lakme, Pond’s, and Closeup. Notably, Lux and Pond’s achieved a turnover exceeding Rs 2,000 crore each, bringing the total count to five BPC brands in this category.
Additionally, HUL boasts five digital-first beauty brands, including Acne Squad, Novology, Simple, and Love Beauty and Planet. This strategic restructuring is anticipated to position HUL for sustained growth and increased competitiveness in the evolving consumer landscape.
