Hindustan Unilever Ltd (HUL), India’s largest consumer goods company, has announced a significant restructuring of its business operations. The company has decided to split its beauty and personal care (BPC) division into two separate entities. This division, crucial to HUL’s operations, reported an FY23 topline of Rs 21,831 crore, accounting for 37% of the company’s total revenue.
The two new divisions resulting from this split will focus on beauty and wellbeing (B&W) and personal care (PC), respectively. This strategic move is set to take effect from April 1, 2024. The restructuring is a part of HUL’s broader initiative to enhance its focus on high-growth segments, particularly in the face of increasing competition from new-age, digital-focused brands.
In the September quarter leading up to this decision, the BPC division contributed 38% to HUL’s revenue with sales amounting to Rs 5,809 crore, indicating its significant role in the company’s overall performance. The split is also aligned with HUL’s ambition to fortify its digital presence and readiness for future market challenges and opportunities.
This decision marks a pivotal shift for HUL, as it aims to better position itself in the dynamic and competitive beauty and personal care market in India, particularly against the backdrop of rapidly evolving consumer preferences and the growing influence of digital platforms in shaping these markets.