Hindustan Unilever (HUL) is finding new growth among India’s affluent, digitally connected consumers even as drought threatens demand in rural areas. With quick commerce accounting for 5 per cent of its business and skincare brand Minimalist crossing the ₹1,000-crore milestone, the maker of Dove, Surf Excel, and Horlicks is expanding its premium portfolio while guarding against pressure on rural household incomes.
With 55 brands reaching nine out of every 10 Indian consumers, HUL is attempting to serve both premium and price-sensitive households
Responding to a question from businessline during Wednesday’s post-results media interaction on digital-first brands and opportunities in beauty, Chief Executive Officer and Managing Director Priya Nair identified India’s top 50–100 million affluent consumers as a major opportunity for specialised products.
“We will absolutely build a portfolio, and we are building a very strong portfolio to serve those needs, especially in beauty,” Nair said.
Asked about drought conditions in Maharashtra and Karnataka and their potential impact on rural demand over the next six months, Nair acknowledged that monsoons had been below normal. “The question is of wages and really what happens to rural wages,” she said, acknowledging that stress may creep in the time ahead.
However, she pointed to a 5–6 per cent increase in minimum support prices and higher MNREGA allocations as potential cushions for rural households. “Overall, we continue to see, and I’m maintaining what I said, that we are continuing to see demand as positive and resilient,” she added.
“HUL’s growing focus on D2C brands and quick commerce reflects the shift towards premium consumption in urban markets. However, rural demand remains critical for sustained volume growth. If drought conditions affect agricultural incomes, the company could face pressure on mass-market consumption even as premium categories continue to expand.” said Kranthi Bathini, Director – Equity Strategy, WealthMills Securities,
The contrasting trends emerge as HUL seeks to turn a sales recovery into stronger earnings. Consolidated revenue from operations rose 14.5 per cent year-on-year to ₹18,226 crore in the September quarter, but profit attributable to shareholders increased only 3.9 per cent to ₹2,790 crore, while EBITDA margin narrowed from 24 per cent to 22.6 per cent.
Nair said affluent consumers were increasingly seeking products addressing niche requirements and unmet needs.
“We have today already a very good business on D2C between both our acquired and new brands. So Minimalist has crossed over 1,000 crore,” she said.
While Minimalist has crossed the ₹1,000-crore milestone, HUL is also strengthening its beauty and wellness portfolio through brands such as OZiva and Simple. Nair said the company would continue investing in product innovation to address emerging consumer needs, particularly among affluent consumers seeking specialised offerings.
The divergence is also visible across categories, with strong growth in beauty contrasting with flat volumes in personal care.
Rapid-delivery platforms are becoming an increasingly important distribution channel for HUL .“Quick commerce for us this quarter would be about 5 per cent of HUL business,” Nair said.
However, management emphasised that growth was not confined to digital channels. HUL was also seeing stronger performance across organised retail and traditional trade.
An important question is how much quick-commerce growth represents additional consumption rather than purchases shifting away from neighbourhood kirana stores and supermarkets. Management did not quantify that substitution.
HUL added approximately 30,000 stores during the quarter, underscoring its continuing investment in traditional distribution even as digital channels expand.
The company is also pursuing new consumption opportunities in foods, introducing Horlicks protein powder and regional chutneys under Kissan.
Its food business recorded 9 per cent underlying sales growth, although volume growth remained in low single digits, indicating that pricing and product mix contributed to the increase.
“Overall, we continue to see, and I’m maintaining what I said, that we are continuing to see demand as positive and resilient,” she said.
Published on October 28, 2026
