THE WHAT? Hindustan Unilever (HUL) plans to increase capital expenditure from around 2 percent to 3 percent of turnover as it targets faster growth through premiumisation, higher consumption and expansion into new categories.
THE DETAILS Under its “Winning in New India” strategy, HUL plans to direct more than 75 percent of future capital expenditure towards growth and savings initiatives, while investing in premium brands, digital capabilities and quick commerce. The company sees opportunities to expand into adjacent high-growth categories including skincare and male grooming, alongside further development of hair care and other underpenetrated segments. HUL has also been using acquisitions to strengthen its exposure to newer growth businesses, including its acquisition of digital-first skincare brand Minimalist.
THE WHY? The increased investment signals HUL’s intention to defend and expand its position in India’s rapidly changing consumer market, particularly in premium beauty and personal care categories where digital-first brands and new shopping channels are reshaping competition.
Source: The Economic Times
