HUL plans higher capital spending as it targets premium beauty, young consumers and emerging opportunities in India’s growing FMCG market.
Hindustan Unilever (HUL) is increasing its focus on premiumisation as it looks to capture emerging opportunities in India’s beauty and personal care market.
The FMCG company plans to raise its productive capital expenditure to around 3% of turnover, compared with approximately 2% over the past five years. The move is part of a broader strategy to strengthen growth through premium categories, market development and new demand spaces.
India’s Beauty Market Creates Opportunity
India’s beauty and personal care market is seeing increased demand for premium products, supported by changing consumer preferences, rising incomes, digital commerce and a younger consumer base.
According to the India Brand Equity Foundation, India’s beauty industry is projected to grow from US$28 billion in 2024 to US$35 billion by 2028.
For HUL, this creates an opportunity to expand categories where consumers are moving towards higher-value products and more specialised routines.
Premium Beauty Remains a Focus
HUL’s Beauty & Wellbeing portfolio includes brands such as Dove, Lakmé, Vaseline, POND’S, TRESemmé, Simple and Minimalist.
The company’s FY26 performance review highlights premium Skin Care, Hair Care and Health & Wellbeing among the areas contributing to growth. Its Beauty & Wellbeing business recorded 6% underlying sales growth in FY26, with premium Skin Care showing strong momentum.
Dove and Lakmé are also among the brands HUL is using to build premium and masstige propositions across its portfolio.
From Mass to Premium
HUL’s strategy is not limited to introducing premium products. The company is also looking at how premium benefits can reach a wider consumer base through different formats, price points and channels.
Its Beauty & Wellbeing business has been working on premiumisation across Skin Care and Hair Care, while expanding its presence in digital and other emerging channels.
The company has also identified categories such as specialised hair care, skin care and other beauty formats as areas with further potential.
Investment in Manufacturing
Earlier in 2026, HUL announced a ₹2,000 crore capital expenditure plan to expand manufacturing capacity across premium Beauty & Wellbeing and Home Care liquids. The investment was aligned with its strategy of focusing on fewer, larger opportunities in high-growth demand spaces.
The latest capex direction adds to this broader investment approach, with HUL looking to strengthen its ability to participate in India’s evolving consumption landscape.
A Changing Consumer Market
HUL’s growth strategy comes as India’s beauty market becomes increasingly competitive, with established FMCG companies, digital-first brands and international beauty players competing for consumers.
The company is therefore looking to combine its established brands and distribution network with premium products, digital-led marketing and new category opportunities.
For HUL, the focus is increasingly on identifying where consumers are willing to spend more, while making premium beauty accessible across a broader section of the market.
