Unilever lists priorities for India chief Priya Nair with portfolio rejig, execution at core

Unilever has sharpened its India playbook, with CEO Fernando Fernández outlining a clear brief for India chief Priya Nair : fix the portfolio for the future and get execution back to peak form. Fernández positioned India as both a strength and a work in progress, even as it anchors the company’s global growth ambitions.

“Priya’s number-one priority in India is to ensure that the portfolio is future fit,” Fernández said at a Barclays fireside chat, underscoring that while Unilever’s dominance across categories remains intact, the mix needs recalibration. He pointed to the company’s outsized market positions, including 55% share in hair care, 45% in laundry, and 80% each in dishwash and lifestyle nutrition. “In most categories we are three to five times the size of our closest competitor,” he said.

The portfolio that has brought us to today's extraordinary leadership position remains a huge strength, he added.

That scale, however, has not insulated the business from recent stumbles. Fernández acknowledged that execution slipped. “I think we lost our way a little for a couple of years, but we are improving now,” he said, adding that flawless execution will be as critical as portfolio changes.

India already contributes 16% to 17% of Unilever’s business, a share Fernández described as a “long-term competitive advantage”. The country is also one of two anchor markets, alongside the U.S., together accounting for 38% of group revenue.

Fernández has attributed this growth to an incredible portfolio, an incredible distribution system, highly efficient production costs, and excellent access to talent in India.

Portfolio strength intact, but gaps in growth pockets

The renewed focus on India comes as Unilever reshapes itself into a more focused beauty, wellbeing and personal care-led company. Post restructuring, 67% of its business will sit in Beauty & Wellbeing and Personal Care, with 62% exposure to emerging markets and a stronger tilt toward premium segments and e-commerce.

Within that strategy, India stands out not just for its scale but for its headroom. One of the clearest opportunities, Fernández said, is laundry. Per capita revenue in India’s laundry market is about $4, compared with $8 to $10 in markets like Brazil, Thailand and the Philippines. Washing machine penetration in India is just 35%, far below the 80% to 90% seen in those countries.

“This is probably one of our biggest opportunities,” he said, noting that gains here could significantly lift home care margins.

The macro backdrop supports that optimism. Fernández pegged India’s economic growth at 6% to 8%, suggesting that 5% volume growth for Unilever in the market is achievable. That compares with around 4% volume growth delivered in the U.S. over the past four years, with a steady-state expectation of about 3%.

Put together, the two markets form a reliable base for Unilever’s growth algorithm, even as other geographies play supporting roles. China, for instance, remains important but “does not have the same strategic importance for us that India has, even though both have populations of around 1.4 billion,” Fernández said.

Globally, the reshaped Unilever will be a €39 billion business, with regional revenues ranging from €6 billion to €12 billion. India alone will account for about €7 billion. The company expects a 48% gross margin, equivalent to around 53% when compared with peers, and a starting operating margin of 19%, leaving room for improvement toward the 21% to 23% seen in pure-play personal care companies.

“I am very bullish on India,” Fernández said. “And on the contribution it can make to Unilever’s overall growth.”