Unilever India Sees Opportunity for Volume Growth Amid Market Concentration

Unilever Sees Opportunities in Global Supply Chain Disruptions

The global supply chain disruptions and rising crude oil prices have led to a shortage of local competition in markets like India, potentially supporting Unilever's volume growth in categories such as home care. According to Chief Executive Officer Fernando Fernández, the British multinational consumer goods maker is seeing opportunities arising from the constraints in the global market.

Unilever's multipolar supply chain remains resilient, but the shortage of local players, particularly in India and Southeast Asia, may make it easier for the company to pass on pricing in the future. In Q1/2026, Unilever achieved its highest-ever share in laundry powders in the Indian market and is sharply increasing its position in the fast-growing liquid detergent segment.

The performance of Hindustan Unilever Ltd (HUL), Unilever's local unit, has been impressive, with a 6 per cent volume growth in the March quarter. Chief Financial Officer Srinivas Phatak described the performance as "of a very high order." Despite inflationary pressures driven by imported crude and currency movements, categories such as home care may actually benefit from the current market conditions.

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Phatak noted that classically, in home care, inflation works in Unilever's favor, allowing the company to balance price and volume through its diverse portfolio. The company's ability to cater to different price points through various brands, as well as manage supply and cash constraints faced by local players, positions it well to take advantage of the current market.

India is consistently ranked as Unilever's second-largest market globally by revenue, accounting for around 12-14 per cent of the company's total sales. The Indian market is expected to continue its growth momentum, with Phatak describing it as a "unique opportunity." The company is confident in its ability to manage the right price and volume equation in the market.

Indian Market Performance

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Unilever's local unit, HUL, is making investments in quick commerce, e-commerce, and broader omni-channel capabilities. The company has reported a two-fold jump in sales from quick commerce in FY26, with e-commerce turnover up 25 per cent. HUL has also increased outlet coverage by about 200,000, totaling around 2.3 million.

In Q1/2026, Unilever reported a turnover of 12.6 billion euros, with volume growth of 2.9 per cent. The company's ability to adapt to the changing market conditions and capitalize on opportunities arising from supply chain disruptions positions it well for future growth.