Unilever bets on 'super growth assets' to strengthen India play

Unilever said it is doubling down on India as a key hunting ground for acquisitions, indicating a shift towards smaller, high-growth deals over large-scale mergers, as the consumer goods company looks to tap into the country's premiumisation and digital boom. The company is actively scouting for "super growth assets" that can accelerate its exposure to fast-growing markets like India while deepening its presence in ecommerce channels, chief executive Fernando Fernandez said on an investor call.

"We are strengthening our footprint in faster-growing markets with around 62% of our business in emerging markets and with our anchor markets of US and India representing close to 38% of the turnover," he said.

The maker of Dove soap and Surf detergent, however, ruled out any transformational deals, and said it will instead have a disciplined approach to capital deployment.

Chief financial officer Srinivas Pathak said the company will prioritise "selective bolt-on acquisitions primarily in India and the US, targeting premium segments, digitally native brands and direct-to-consumer models". Unilever on Tuesday announced the merger of its food business with McCormick & Company to create a $20 billion revenue powerhouse combining brands such as Knorr and Hellmann's with McCormick's portfolio including French's, Cholula and Frank's RedHot.

The company excluded its India business from the $44.8 billion transaction, highlighting the market's strategic importance even as it exits slower-growth food categories globally. Nepal and Portugal have also been excluded from this transaction.

Its Indian unit, Hindustan Unilever, has over the past few years seen a slowdown in sales growth amid inflation pressures, weak demand and a host of niche online brands eating into its market in personal care and household segments.

HUL has been bullish on direct-to-consumer acquisitions. It took full ownership of wellness brand Oziva in February 2026 and acquired a majority stake in skincare brand Minimalist early last year. It recently divested its minority stake in nutraceutical brand Wellbeing Nutrition, citing portfolio clean-up.

Unilever said it is focused on sharpening its home and personal care portfolio as it increases its exposure to the beauty, wellbeing and personal care segment to around 67% of its turnover.

"We are creating a 39 billion home and personal care pure-play, with leading positions in highly attractive categories, stronger exposure to fast-growing geographies like the US and India, and greater participation in premium and digital channels," said Fernandez.

From a category segment, channel and geographic perspective, these two markets offer faster growth and more attractive profit pools, giving its portfolio and capabilities a clear right to win, he said.

The US and India together account for 38% of Unilever's turnover.