Unilever Sees India Growth Opportunity Amid Local Player Supply Constraints

Unilever anticipates increased sales in India as global supply chain disruptions and rising packaging costs create market openings for the consumer goods giant. The British multinational sees opportunities emerging from constraints affecting local competitors, particularly in India and Southeast Asia.

"We are seeing some shortage in some local players, particularly in India and Southeast Asia, that can support our volumes, and it will make easier the passing of pricing in the future," said CEO Fernando Fernandez in the earnings call.

The company reported its highest-ever share in laundry powders in the Indian market during Q1/2026, while also "sharply" increasing its position in the fast-growing liquid detergent segment. Hindustan Unilever Ltd (HUL) reported a 6 per cent volume growth in the March quarter, described by CFO Srinivas Phatak as performance of a 'very high order'.

"Classically, in home care, inflation works in our favour. We have the portfolio to cater to the different price points through brands, but more importantly, a lot of the local players get constrained both from a supply perspective as well as cash," Phatak said, terming it a "unique opportunity" for the company.

India is consistently ranked as Unilever's second-largest market globally by revenue, after the United States, with around 12-14 per cent contribution to its total sales. The company is making significant investments in quick commerce, e-commerce, and broader omni-channel capabilities.

HUL reported a two-fold jump in sales from quick commerce in FY26, with e-commerce turnover up 25 per cent. From a general trade perspective, HUL has increased outlet coverage by about 200,000, totalling approximately 2.3 million outlets.

Unilever reported a turnover of 12.6 billion euros in Q1/2026, with volume growth of 2.9 per cent.