 "Hindustan Unilever sees 10 of its brands at the sweet spot to go premium")
Hindustan Unilever (HUL), one of the country’s largest consumer goods companies, said in its investor presentation that 10 brands are at the sweet spot of premiumisation.
At its Capital Markets Day held on Friday, it told investors that its premium products have high desirability and high performance, and also added that they are aspirational and ahead of competition on brand superiority.
The maker of Lux soaps pointed out in its presentation that its six long-term bets include premium skin care products for the face, hair, body wash, homeware liquids, condiments and mini meals, as well as prestige and well-being, as they offer high double-digit growth.
It also said that its “winning in many Indias” strategy means that 100 cities in India contribute to around 30 per cent of its turnover. While talking about its digital push, it has onboarded 1.4 million retailers, and every Re 1 out of Rs 2 of traditional trade demand is now captured on Shikhar.
It also said that 19 of its brands have a turnover above Rs 1,000 crore, and its revenue has grown at a compound annual growth rate (CAGR) of 8 per cent from FY14 to FY24. In skincare, HUL said that it will have disproportionate investments to build six high-growth segments: face cleansing, light moisturiser, serums and treatments, sun care, deseasonalised body care, and masstige.
In personal care, it said that four of its brands are in the Rs 1,000 crore category.
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On foods, it said that it needs to increase consumption of Horlicks and sees specialist nutrition opportunities, aiming to grow Horlicks Plus three times by 2030. It also sees huge opportunity in mayonnaise and expects it to be a Rs 3,000 crore market by 2030.
In home care, the company continues to see huge headroom for growth. It aims to get households that use washing machines to switch to liquids and is also working on premiumising dishwasher formats. It has also extended Vim to the floor cleaners category.