Unilever ready to defend India top spot with millions
Unilever will do «whatever it takes» to defend its market leadership in India and won't hesitate to invest «hundreds of millions» or make acquisitions as competition intensifies on several fronts-from regional rivals to new-age, digital-first brands.
«We have established positions that we believe are very, very strong. We have an unblinking commitment to defend India,» Unilever chief financial officer Fernando Fernandez told investors at the Bernstein Strategic Decisions Conference on Wednesday. «So, I will not blink before putting in hundreds of millions to defend a position in India if it has to be defended. We know investors would reward us because we defend positions, whatever it takes.»
The dominance over most home and personal care categories by Hindustan Unilever (HUL), the local unit of the Anglo-Dutch consumer giant, has been coming under threat.
Unilever has said it continues to regard India as a jewel in its crown. HUL, India's biggest consumer goods company, accounts for more than 11% of Unilever's global sales. The country is its second-biggest market after the US in terms of revenue. It is the leader by far in soaps, shampoos, detergents and skincare, with 35-50% share and is also the largest tea and malted food drinks maker.
Within oral care and coffee categories, HUL has the second-biggest share. However, regional players at the mass end and direct-to-consumer brands at the premium end of the market nibbled away at its share last year. «We will invest in acquisitions, if necessary, to complete
