2 days ago
Hindustan Unilever Raises Capital Spending Target to Drive Growth
Hindustan Unilever wants to spend more money improving and expanding its business.
It plans to raise productive spending to 3% of sales, up from about 2%.
The company wants to grow by selling more products, not only by raising prices.
It will focus on areas such as grooming, skincare, healthy snacks, protein and hydration.
HUL also wants its premium products to grow faster than its everyday products.
It has sold or separated some businesses that it considers less important.
The company has bought brands including Oziva and Minimalist to enter newer areas.
It also plans to use artificial intelligence to make advertising more effective.
In the latest April-June quarter, its revenue rose 10%, but its profit margin was slightly lower than a year earlier.
Hindustan Unilever plans to increase productive capital expenditure to 3% of turnover from about 2%.
The company will target high-growth categories including male grooming, skincare, fragrances, nutrition, hydration and ready-to-drink products.
HUL said volume-led growth will come from increased consumption, premiumisation, under-penetrated segments and new categories.
The company aims to generate 500 basis points of reinvestment capacity and grow premium lines 50% faster than everyday products.
HUL reported a 10% revenue increase to ₹17,341 crore in the April-June quarter of FY27, while its Ebitda margin fell to 23%.
- Who
- Hindustan Unilever Ltd., the maker of Lux and Surf Excel.
- What
- The company plans to raise productive capital expenditure to 3% of turnover and expand in selected high-growth categories.
- Where
- The articles do not specify a location.
- When
- The plan was disclosed in a Capital Markets Day presentation submitted on Friday; the cited quarterly results cover April-June of FY27.
- Why
- HUL says the additional investment is intended to support long-term, competitive, volume-led profit growth.
Key facts
- Planned productive capex
- 3% of turnover, up from around 2%
- FY26 annual turnover
- ₹63,763 crore
- Targeted reinvestment capacity
- 500 basis points of 'fuel'
- Premium growth target
- Most profitable premium lines to expand 50% faster than core everyday products
- Media effectiveness target
- More than 10% improvement using artificial intelligence
- Latest quarterly revenue
- ₹17,341 crore, up 10% in April-June of FY27
- Latest Ebitda margin
- 23%, down 40 basis points from the year-ago quarter
Sources
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