'India's FMCG consumption lags behind global peers'

Hindustan Unilever’s Managing Director and Chief Executive Officer, Rohit Jawa, recently provided insights into India’s FMCG (fast-moving consumer goods) consumption and the company’s future growth prospects during an investor briefing.

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Jawa pointed out that India’s per capita FMCG consumption, when compared to other economies with similar profiles, remains notably low. Particularly, he emphasized that rural areas in India are significantly underindexed in FMCG consumption.

However, he expressed optimism about the future, stating that premiumization within the Indian FMCG sector is expected to accelerate as the country becomes more affluent and urban. Jawa noted that the more affluent population is projected to double by 2027. Naturally, this segment exhibits significantly higher per capita FMCG consumption, approximately 1.5 to 2 times greater than the national average.

Jawa’s confidence in Hindustan Unilever’s ability to capitalize on this growth opportunity was evident. He mentioned that each of the company’s three divisions is expected to surpass the size of most FMCG companies in the country. HUL takes pride in being the market leader in over 85% of its business and boasts a diverse portfolio of 50-plus brands, with 19 brands achieving an annual turnover of over Rs 1,000 crores.

Jawa outlined the company’s strategic approach to growth: