HUL Strategically Divides Beauty and Personal Care for Modern Beauty Brand Challenges

Hindustan Unilever Ltd (HUL) is making strategic moves to enhance its competitiveness in the beauty and personal care market. Starting April 1, the company will split its beauty and personal care division into two separate entities—beauty and wellbeing (B&W) and personal care (PC). This structural change aligns with its parent company, Unilever aims to better compete with newer, digitally-focused brands challenging established players.

Contributions and Transition Rationale

HUL's beauty and personal care division contributed a substantial 37% to its revenue in the fiscal year 2023, totaling ₹ 21,831 crore. Recognizing the changing dynamics in the beauty and personal care landscape, CEO and Managing Director Rohit Jawa emphasized the need for a more focused approach. This restructuring allows the company to leverage its strong portfolio efficiently in both the beauty and wellbeing and personal care segments.

Harman Dhillon will lead the beauty and wellbeing division, while Kartik Chandrasekhar will head the personal care business. Both executives bring valuable experience to their roles and will join as executive directors. Madhusudhan Rao, the former executive director of B&W and PC, has decided to retire.

Market Outlook and Growth Potential

The move comes at a time when the beauty and personal care market in India is expected to grow to $30 billion by 2027, accounting for about 5% of the global market. The category is currently under-penetrated, with per capita spending in India at $14, compared to $313 in the U.S. and $38 in China. The company aims to address the evolving market landscape and stay ahead of trends.

Digital Focus and Appointments

In line with its commitment to staying future-ready, HUL is strengthening its digital focus. Arun Neelakantan has been appointed as the Chief Digital Officer to accelerate the next phase of the company's growth. Recognizing the importance of online channels, the beauty and personal care segment is projected to become a $10 billion market in India by 2027, representing approximately 33% of the total market.

Final Words

Lux and Pond’s, top brands of HUL, crossed Rs 2,000 crore in turnover. HUL's diverse portfolio, featuring digital-first brands like Acne Squad, Simple and Love Beauty, and Planet caters to varied consumer preferences in the evolving beauty and personal care market.

HUL's restructuring is a proactive response to changing market trends, aiming for a more efficient approach to meet consumer demands. The company's emphasis on digitalization and leadership appointments demonstrates its commitment to staying ahead of industry trends.