HUL accelerates premiumization in beauty and wellbeing Segment

Hindustan Unilever Limited (HUL) is ramping up its focus on premium offerings in the beauty and wellbeing category to align with evolving consumer aspirations. During a post-earnings call, CEO Rohit Jawa revealed plans to improve the company's portfolio by 900 basis points toward premiumization over the next few years.

The affluent beauty segment currently represents around 50% of the beauty market and is growing at twice the rate of the rest of the market. Jawa emphasized that India’s per capita beauty expenditure remains significantly lower compared to other countries, providing ample opportunities for growth in premium categories.

To bolster this shift, HUL has announced its acquisition of a 90.5% stake in Minimalist, a skincare startup, for ₹2,955 crore. The remaining 9.5% will be acquired from the founders over the next two years, as per the agreement. This move aligns with HUL’s strategy to tap into emerging beauty trends and high-growth categories such as serums, masks, and premium shampoo sachets, which are outperforming mass-market options.

Despite challenges such as a delayed winter impacting sales, HUL's beauty and wellbeing segment grew modestly by 1% year-on-year in the December quarter. The company reported consolidated revenue of ₹15,559 crore for the period, up from ₹15,259 crore in the same quarter last year, along with a 19% jump in net profit, aided by a one-time exceptional gain from the divestment of its Pureit business.

HUL’s commitment to premiumization reflects its strategy to cater to consumer aspirations while positioning itself as a leader in the evolving beauty market.