Hindustan Unilever Limited (HUL) is one of the biggest fast-moving consumer goods (FMCG) companies in India. From soaps and shampoos to detergents and tea, HUL’s products are present in almost every Indian household. Recently, HUL’s CEO and Managing Director, Rohit Jawa, made a strong statement in an interview, saying the company will “bet big on growth, even if it affects profit margins.” This shows HUL’s clear focus on expanding its business and reaching more consumers, even if it means making a little less profit in the short term.
Rohit Jawa took over as CEO of HUL in June 2023. He is a highly experienced leader who has worked at Unilever for more than 30 years in different countries and business roles. His leadership style is modern and growth-oriented. Jawa is now aiming to take HUL forward with strategies that focus on digital transformation, consumer connection, and long-term growth. He believes that growth is more important than short-term profit and is willing to take bold steps to achieve it.
In the interview, Jawa explained that HUL is focusing on volume-led growth, which means the company wants to sell more products to more people, rather than just increasing the prices of existing products. He said, “Growth is more important than short-term profits. We want to reach more consumers and increase our volumes. For this, we are ready to take short-term hits on margins.” This approach may slightly reduce profit per product sold, but it can help the company grow its overall revenue by increasing sales volume.
To understand this better, let’s look at what profit margin and growth mean. A profit margin is the amount of money a company earns on each product after subtracting all the costs involved. Growth, on the other hand, means expanding the size of the business—by selling more, entering new markets, launching new products, or reaching new consumers. In HUL’s case, the focus is now clearly on increasing the number of products sold, especially in India’s rural and semi-urban markets.
There are several strong reasons why HUL is betting more on growth than on profit margins. First, consumer behavior in India is changing. People are becoming more price-sensitive, especially in rural areas where incomes are lower and inflation has affected spending. Consumers want quality products at affordable prices. HUL wants to meet these needs by offering smaller packs and lower-cost options that still maintain high quality. This strategy helps attract first-time buyers who may later shift to larger packs.
Second, competition in the Indian FMCG market is increasing rapidly. New local brands and startups are entering the space with attractive pricing and digital-first models. Even traditional competitors like ITC, Godrej, and Dabur are expanding aggressively. To stay ahead, HUL must focus on market share and reach. By focusing on volume-led growth, HUL can serve more consumers across different income levels and regions.
Third, India offers huge potential for long-term growth. With a population of over 1.4 billion people and rising urbanization, there are many untapped markets, especially in Tier 2 and Tier 3 cities and villages. If HUL can successfully reach these markets now, it will have a strong advantage in the future. By gaining new customers early, the company can build brand loyalty that lasts for decades.
Rohit Jawa also shared key parts of HUL’s growth strategy. One major area of focus is expanding in rural India. HUL wants to increase its reach in villages by offering products in smaller, more affordable packs. These low-cost packs allow rural consumers to try branded products without spending too much. If they like the product, they are more likely to buy it again or upgrade to a larger pack.
Another part of the growth plan is product innovation. HUL is investing in research and development to create new personal care, nutrition, and hygiene products. These new items are specially designed for Indian needs, such as climate, skin types, and hair textures. This makes the products more relevant and attractive to Indian consumers.
Digital transformation is also playing a big role in HUL’s growth story. The company is using digital tools, artificial intelligence, and data analytics to improve supply chains, marketing, and customer service. For example, data helps HUL understand what products are selling best in which areas. This helps the company plan better and serve customers faster.
At the same time, HUL is focusing on building purpose-led brands. Many modern consumers prefer products from companies that care about the environment and social issues. HUL is responding by reducing plastic use, launching eco-friendly products, and supporting community programs. Sustainability is becoming a core part of the company’s strategy, helping it build a strong brand image.
While HUL’s focus on growth is clear, Rohit Jawa admitted that there may be some short-term impact on profit margins. However, he emphasized that the company is prepared for it. He said, “We will protect our margins wisely, but growth comes first. If margins drop a bit while growing the business, we are okay with that.” This shows that while HUL will manage its costs carefully, it will not let profit worries stop it from expanding.
Market experts have different views on this approach. Many analysts believe that in a competitive and price-sensitive market like India, focusing on volume is the right move. Growth in volume shows real customer demand and helps the company increase its footprint. They also believe that once HUL gains more market share, the profits will automatically improve over time. However, some investors are cautious. They worry that lower margins could affect short-term earnings and stock performance. But overall, most experts agree that HUL’s strong distribution network and brand power will support its long-term strategy.
For consumers, this growth-focused approach brings many benefits. It means more product choices, better value, and improved access to branded goods in rural and semi-urban areas. HUL’s smaller packs, innovative products, and affordable pricing will help more people enjoy high-quality personal care and home care products. This is especially important in smaller towns and villages where consumers often have fewer choices.
For competitors, HUL’s aggressive expansion puts pressure on them to do better. Other FMCG brands may also lower prices, improve product quality, and launch new items to keep up. This competition is good for consumers because it leads to better products at lower prices across the market.
Looking at HUL’s performance in FY2023–24, the company faced challenges such as rural slowdown and inflation. But it managed to maintain its leadership in key segments like skincare, haircare, and household cleaning. Now, with inflation coming down and rural demand starting to recover, HUL expects a stronger year in FY2024–25. Rohit Jawa sounded confident, saying, “We are confident about recovery. Rural markets will bounce back, and we are ready to capture that demand.”
Rohit Jawa’s bold statement shows a clear and focused vision. HUL is betting big on growth, even if it means lower profits in the short term. The company is investing in rural expansion, new products, digital tools, and sustainability. This strategy reflects confidence in India’s future potential and a strong desire to serve more people. While challenges remain, HUL’s growth-first mindset positions it well for long-term success in the ever-changing Indian FMCG market.
