Hindustan Unilever Names Priya Nair as First Woman CEO Amid Growth Struggles
Image Credit: The Mint
New Delhi: In a landmark leadership shift, Hindustan Unilever Ltd (HUL) on Thursday named Priya Nair as its new managing director and chief executive officer. The announcement triggered a 4.61% jump in HUL shares in early Friday trade, as analysts and investors welcomed the move as a sign of renewed urgency from Unilever to revive growth in its second-largest market.
Nair, who currently serves as Unilever's global president of beauty and wellbeing, will formally assume charge on August 1, 2025, for a five-year term. She replaces Rohit Jawa, who is stepping down on July 31, citing personal and professional reasons. Notably, Nair becomes the first woman to lead the FMCG giant in India.
A Veteran at the Helm
With nearly three decades of experience at Unilever, Nair has been closely involved with HUL’s core operations, previously heading its home care and beauty & personal care businesses. Her leadership led to a 570 basis point margin improvement in the home care segment from FY14 to FY20. Her latest role saw her manage a €13 billion global portfolio across 20+ countries, championing digital marketing and innovation-led growth.
She is also slated to join the HUL board (pending approvals) and will remain a member of Unilever's global leadership executive.
“Her strong credentials and experience across categories signal a deepening of HUL’s strategic focus on growth segments, innovation, and purpose-led brands,” said Abneesh Roy of Nuvama Institutional Equities.
Market Reaction and Broker Confidence
Brokerages and analysts largely viewed the leadership change as a positive inflection point.
- Nomura maintained its 'buy' rating and set a target price of ₹2,600, citing Unilever’s commitment to reigniting growth in India.
- Jefferies noted that Nair’s appointment could bring a sharper focus on execution, premiumisation, and transformation.
“We see the change of guard at HUL as Unilever’s strong commitment and seriousness to deliver improvement and outperformance from India,” said Nomura in a note dated July 11.
HUL's Struggle with Growth
Despite its legacy status, HUL has faced tepid growth in recent years. In FY25, the company posted:
- Revenue: ₹60,680 crore (2% YoY growth)
- PAT: ₹10,644 crore (5% YoY growth)
- Volume growth: 2% (flat compared to FY24)
While its laundry segment has performed steadily, beauty, personal care, and packaged foods have come under pressure from inflation and aggressive digital-first competitors.
HUL's volume growth has not surpassed 5% in six years, highlighting its pressing need for innovation and channel modernisation.
Jefferies Wishlist for the New CEO
In a note to investors, Jefferies outlined key areas for Nair to address:
- Defend market share in core categories such as soaps, tea, and beauty
- Fix laggards like Horlicks, which have failed to capture expected market share in the growing nutrition space
- Modernise GTM (go-to-market) strategy to counter the narrowing traditional distribution moat
- Embrace premiumisation and identify emerging category trends before competitors do
Unilever's Global Reset
Nair’s elevation also aligns with Unilever’s global realignment under CEO Fernando Fernandez. India and the US have been identified as anchor markets for the next growth phase. The new strategy includes streamlining operations, focusing on innovation, and unlocking local-market potential.
India accounts for about 11% of Unilever's global revenue, underlining the importance of the market in the conglomerate’s strategy.
“India remains central to our future. We are doubling down on markets where we have a strong competitive edge,” Fernandez stated in a recent investor call.
The Road Ahead for Priya Nair
Nair inherits a complex mix of opportunities and challenges:
Key Challenges:
- Changing shopper behavior: Demand from urban markets is tapering, while rural recovery remains fragile.
- Rising competition: D2C and regional brands are rapidly eating into market share.
- Commodity pressures: Fluctuations in palm oil, tea, and coffee prices continue to impact margins.
Strategic Opportunities:
- Leverage digital commerce to engage new-age consumers.
- Strengthen purpose-driven branding to build long-term loyalty.
- Drive innovation in nutrition and skincare, especially after the Minimalist acquisition.
Leadership Turnover in FMCG
HUL's leadership transition is part of a broader churn in India's FMCG sector:
- Godrej Consumer and Britannia have also undergone CEO changes, reflecting a new era of performance-driven accountability.
- Globally, Unilever announced 7,500 job cuts and the spin-off of its ice-cream business to reinvest in core categories.
These changes underscore the urgency to "do fewer things, but better," as stated by Unilever earlier this year.
Final Thoughts from Editorial
The appointment of Priya Nair as HUL’s first female CEO is a bold step in Unilever’s reset strategy for India. While she brings with her a proven track record and deep market insight, the road ahead will test her ability to accelerate innovation, restore volume momentum, and fortify HUL’s leadership amid a fragmented FMCG landscape.
With a rapidly evolving consumer base and fierce competition, Nair’s tenure may well define the next chapter of India’s most iconic consumer company.
