Hindustan Unilever's Home Care Bet: Can Vandana Suri Revive Slowing Growth?

Hindustan Unilever Limited (HUL) has appointed Vandana Suri as Executive Director for Home Care, effective Jan. 1, 2026. 

Suri, who returns from her role as General Manager for Beauty and Wellbeing at Unilever Indonesia, will join the HUL Management Committee and take charge of the company's most stable segment, Home Care, which includes powerhouse brands like Surf Excel, Rin, Wheel, and Vim. 

The appointment comes at a critical juncture for India's largest FMCG company, which has delivered negative returns over the past five years, while the Nifty 50 index has almost doubled. 

With Beauty and Personal Care under pressure and Foods showing muted growth, Home Care has become the lone bright spot. 

The question now is whether Suri's track record in premiumization can inject fresh momentum into a mature, highly competitive segment.

In the September 2025 quarter, Home Care delivered a competitive performance, with mid-single-digit volume growth on a strong base, up from high single-digit growth in the previous year. 

The volume growth translated into flat underlying sales growth due to price reductions taken in prior quarters — a strategic move to maintain competitive pricing as crude oil deflated by over 10%.

Fabric wash delivered mid-single-digit volume growth driven by double-digit expansion in the liquids portfolio. Fabric conditioners maintained double-digit growth and continued their innovation-led premium journey with the launch of Comfort Perfume Deluxe, a premium collection inspired by award-winning fragrances. 

Household Care sustained double-digit volume growth, led by strong performance in liquids, while dishwashing bar recorded high single-digit volume expansion.

Yet this stability comes with a fundamental limitation. Laundry detergents and dishwashing products are mature, high-penetration categories with limited scope for the kind of premiumization tailwinds that have historically driven FMCG margins. 

Unlike Beauty and Personal Care, where consumers trade up to serums and premium skincare, Home Care remains stubbornly price-sensitive. 

When HUL experimented with price cuts in response to commodity deflation, volumes surged, an indication that the mass market remains the core battleground, not the premium segment.

The competitive landscape adds another layer of complexity. Regional players such as Nirma and Ghari Detergent have entrenched positions in the mass market, particularly in rural and semi-urban areas. 

For HUL, defending market share means balancing volume growth with margin protection — a delicate act that has worked so far but offers little room for error. 

CFO Ritesh Tiwari acknowledged during the earnings call that Home Care operates in a less elastic pricing environment compared to skin cleansing or tea. It means the segment is more resilient to price changes but also offers fewer levers for margin expansion.

Suri's appointment is strategic because of her track record in premiumization. Over her 20+ years with HUL, she has led the premium laundry portfolio, served as Vice President for Skin Care and Colour Cosmetics, and, most recently, led a transformation strategy in Indonesia that accelerated business growth. 

Her strength lies in taking categories upmarket by focusing on high-growth formats, expanding into adjacent segments, and building aspirational brand equity.

If Suri can replicate even a fraction of her success in premiumizing skincare and laundry, HUL could unlock margin expansion in a segment that delivers solid volumes. Opportunities exist in fabric conditioners beyond Comfort, specialty cleaners under the Vim master brand, and premium variants of Surf Excel targeting urban consumers willing to pay more for superior performance or sustainability credentials.

However, the Home Care segment is different from Beauty. In skincare, consumers are willing to experiment with new formats, ingredients, and brands. In laundry detergents, the core value proposition remains functional which is clean clothes at an affordable price. 

CEO Priya Nair emphasized during the earnings call that HUL's job in Home Care is to "continue to drive premiumization and market development," particularly in liquids. 

While Home Care is a ubiquitous category segment, Nair noted the penetration for dishwashing and body wash liquids remain under 2%. 

Suri's mandate is clear: to accelerate the shift from bars and powders to liquids, where margins are higher, and the consumer willingness to pay premiums is greater.

HUL's September-quarter performance was impacted by the GST rate reforms announced in August 2025. 

The government reduced GST rates for 40% of HUL's portfolio, which now falls within the 5% GST bracket. While the rate cuts are structurally positive for long-term consumption, the transition created short-term disruptions. HUL implemented pricing and grammage changes across more than 1,200 SKUs, passing on the entire benefit to consumers.

The result was transitory chaos as trade partners destocked old inventory, consumers delayed purchases, expecting lower prices, and multiple price points existed simultaneously in the market. 

Management estimated the GST transition impacted overall HUL growth by up to two percentage points in the quarter. Home Care was not immune despite substantial volumes as flat revenue growth reflected a deflationary pricing environment.

Looking ahead, management expects normal trading conditions to resume by early November 2025. Ritesh Tiwari noted that receivables in the Indian business fell to just twelve days from thirty days previously, which indicates strong underlying demand once the GST confusion clears. 

The challenge for the Home Care segment will be to sustain mid-single-digit volume growth while rebuilding pricing power as commodity tailwinds moderate.

Vandana Suri's appointment to lead Home Care is reassuring but may not be transformative. It signals that HUL management recognizes the importance of its most stable segment and is bringing in proven talent to sustain and accelerate growth. 

Suri's premiumization expertise and international experience are valuable assets, and her ability to expand fabric care formats or introduce innovation could provide incremental margin gains.

Analysts tracking HUL stock forecast revenue to increase at an annual rate of 9.6% between fiscal 2025 and fiscal 2029. Adjusted earnings are forecast to expand at a similar rate from $44.36 per share in fiscal 2025 to $64 per share in fiscal 2029. 

Currently, HUL stock trades at a forward price to earnings multiple of 48x, which is quite steep and lower than its 10-year average of 52.4x. Despite its steep valuation multiple, Dalal Street remains bullish on HUL share and expect its price to rise by 21% over the next 12 months, given consensus targets.

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