04 Dec 2023
Hindustan Unilever (HUL) is splitting its beauty and personal care division into two. This comes in the wake of competition from digital-first brands and direct-to-consumer business, which have risen considerably in the recent past. Now the business will be divided into beauty & well-being (B&W) and personal care (PC). Each of these will have a separate Division Head to oversee the operations. There has been an increasing focus on these segments owing to the growth opportunities and consumer shifts.
Harman Dhillon will head the beauty and well-being division, while Kartik Chandrasekhar will be in charge of the personal care unit. Madhusudhan Rao, the current Executive Director, B&W and PC, will be retiring soon.
According to Rohit Jawa, CEO and Managing Director, the beauty and personal care divisions are HUL’s most valued businesses, having contributed a handsome 37% (Rs. 21,831cr) in FY 2023. However, the business model and competition for both is changing. With this restructuring, the company will have a strong focus individually on these two segments.
Online channels are a big contributor for BPC boom and the company’s goal of being ‘future ready’ is seen in a stronger digital focus with the appointment of Arun Neelakantan as Chief Digital Officer.
The Indian BPC market is projected to grow to USD 30bn by 2027, up from USD 19bn in 2022 according to a Redseer report. The online channel will contribute to 30% of this growth.