Brands
Unilever sees India growth boost as rivals face supply strain
Higher crude costs hit local players, aiding volumes and pricing power
MUMBAI: When costs rise, competition sometimes falls and that’s turning into an unexpected tailwind for Unilever. Unilever has flagged a shifting competitive landscape in markets such as India and Southeast Asia, where supply chain disruptions and rising packaging costs driven by higher crude oil prices are squeezing smaller, local players. Speaking during the earnings call, CEO Fernando Fernández said these constraints are thinning competition, potentially supporting volume growth and making future price hikes easier to execute. He added that while global supply chains remain volatile, Unilever’s multipolar setup has helped it stay resilient and opportunistic.
The impact is already showing up on the ground. In Q1 2026, the company recorded its highest-ever market share in laundry powders in India, while also stepping up its push into the fast-growing liquid detergent segment.
At Hindustan Unilever Ltd, CFO Srinivas Phatak described performance as “of a very high order”, with the company clocking 6 per cent volume growth in the March quarter. Despite persistent inflationary pressures from imported crude and currency movements, he noted that categories such as home care tend to benefit from such cycles.
The logic is simple, while large players can balance pricing across portfolios and absorb shocks, smaller competitors often struggle with cash flow and supply constraints. That gap, Phatak said, is creating a “unique opportunity” for HUL to strengthen its position.
India, already Unilever’s second-largest market globally after the US, contributes around 12–14 per cent of total sales and remains central to its growth narrative. Pricing actions, coupled with GST-related factors, have begun to support demand recovery, while newer brands such as Minimalist are gaining traction.
Distribution and channels are also seeing a push. HUL has expanded its general trade reach by around 200,000 outlets, taking total coverage to approximately 2.3 million. Meanwhile, its bet on digital commerce is paying off, quick commerce sales have doubled in FY26, and e-commerce turnover has grown by 25 per cent, supported by a revamped organisational structure.
Globally, Unilever reported Q1 2026 turnover of €12.6 billion, with volume growth of 2.9 per cent steady, but it is markets like India that are providing the sharper edge.
As crude prices ripple through supply chains, Unilever seems to be finding an unlikely advantage: when the field tightens, scale starts to matter even more.
