Unilever to double down on India under new strategic shift

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Subscribe to enjoy similar stories. Unilever said it will put India at the center of its new business strategy as it aims to benefit from increasing consumption in one of the world’s fastest-growing economies. In an event with investors, Chief Executive Hein Schumacher on Friday said India is the best opportunity for Unilever over the next couple of years and will be the key for all its group businesses.

He added that India’s gross domestic product per capita is estimated to grow to about 4,500 euros ($4,713) by 2033, representing an 85% increase in 10 years. The consumer-goods giant behind brands such as Dove soap and Knorr stock cubes confirmed the separation of its ice-cream business by the end of next year. It added that the new organization will consist of four groups, driven by its 30 major brands and operating across 24 key markets, which represent nearly 86% of its total turnover.

Unilever also said it is on track to deliver its €800 million turnaround program. The company also backed its midterm targets. It continues to expect underlying sales to grow by a mid-single-digit percentage after the separation of the ice-cream division, supported by underlying volume growth of at least 2%.

It also aims for a modest underlying operating margin improvement, driven by gross margin expansion through operating leverage and productivity improvements. Schumacher said the company is making further progress in 2024 by stepping up in volume growth while rebuilding its profit margins, and that it expects to return to market share growth in 2025. Another focus of Unilever is the reinvestment behind its main brands in order to boost turnover with fewer, but bigger innovations.