FMCG major Hindustan Unilever Ltd (HUL) is stepping up investments in artificial intelligence (AI), advanced analytics and digital technologies as it seeks to sharpen consumer engagement, strengthen supply chain resilience and drive future growth.
In the company’s Annual Report 2026, HUL Chief Executive Officer & Managing Director Priya Nair said technology and AI are increasingly becoming core enablers of the FMCG giant’s growth strategy.
AI powering consumer engagement and supply chain transformation
According to Nair, AI is helping HUL better understand consumer preferences and engage with them in more personalised and meaningful ways at scale.
The company is also deploying AI and advanced analytics across its supply chain to improve responsiveness, agility and resilience.
“AI and advanced analytics are transforming our supply chain—making it more responsive, more agile and more resilient,” Nair said.
She added that initiatives such as digital twins, advanced analytics and the company’s supply chain nerve centre are helping create a more intelligent and interconnected manufacturing network.
Demand environment improves in FY26
HUL said FY26 witnessed an improvement in the demand environment, supported by favourable macroeconomic conditions.
The company attributed the recovery to government-led fiscal measures, including GST and income tax reforms, supportive monetary policies and easing inflation, which helped reduce pressure on household budgets and support consumption.
However, HUL noted that the operating environment remained challenging due to commodity price volatility and currency-related headwinds.
Volume-led growth strategy takes centre stage
During the year, the company sharpened its priorities with a clear focus on driving volume-led revenue growth.
A key pillar of this strategy was a deeper consumer segmentation approach, which now influences product development, pricing, propositions and channel strategies.
The company also focused on building more desirable brands through premiumisation, purpose-led positioning and culturally relevant offerings. This was supported by science-backed innovations and digital-first demand generation initiatives.
HUL further strengthened its presence in specialised general trade channels while leveraging technology and partnerships to capture opportunities in emerging retail channels.
Bigger bets on high-growth demand spaces
The FMCG major said it has increased focus on allocating resources towards fewer but larger opportunities in high-growth categories.
Management believes the company has a strong right to win in these spaces through a combination of innovation, market development and brand elevation strategies.
₹2,000 crore investment to expand premium portfolio capacity
In line with its growth priorities, HUL announced a proposed investment of up to ₹2,000 crore to expand manufacturing capacity across fast-growing premium segments.
The investment will primarily support categories within Beauty & Wellbeing and Home Care liquids, where demand continues to grow.
Organisation simplified for faster execution
The company also undertook organisational changes aimed at improving agility and accelerating decision-making.
HUL introduced a unified India structure and created new leadership roles, including a Chief Marketing Officer and a Chief R&D Officer. It also established a dedicated India R&D function.
According to the company, these changes have helped compress decision cycles and enable sharper and faster execution across the business.