Right now, so many people have the idea that HUL is one brand that is behind so many household or daily use products that we consume or use in India, but just a decade ago, not many people were aware of this. That’s just because HUL doesn’t directly market itself in the Indian market; instead, there are many different brands that it actually owns and sells its products through. Today, though, we’re specifically focusing on HUL, and mainly on the HUL business model and how does HUL makes money. Let’s just get to it then.
About HUL
By this point, many of you already know that Hindustan Unilever Limited, popularly known as HUL, is the top FMCG company in India that has been satisfying people’s needs for over 90 years. A decade of the country’s households is the reach of its products, which is absolute proof of how deeply it is present. Incorporating the best of global knowledge and local understanding, HUL, with its head office in Mumbai and the backing of Unilever, is an ideal combination to make brands that Indian customers super easily recognize, absolutely love, and highly trust.
| Company/brand name | Hindustan Unilever Limited (HUL) |
| Establishment year | 1931 (as Hindustan Vanaspati Manufacturing Company) |
| Headquarters | Mumbai |
| Founder/owner | Unilever plc (majority owner; HUL is a subsidiary of Unilever) |
| Industry | Fast-moving consumer goods (FMCG) |
| Net worth | ₹6,08,074 crore |
| Total revenue in 2024 | ₹59,579 crore turnover (FY 2023-24) |
What HUL Sells?
HUL operates mainly in three key categories.
- Home Care: Products like detergents, fabric conditioners, and surface cleaners.
- Beauty and Personal Care: Soaps, shampoos, skin care, and other personal care products.
- Foods and Refreshments: Tea, coffee, ice cream, and packaged foods.
HUL has a range of products that can fit into any price category, starting from very cheap essentials to luxurious products. And it is the premium segment that, for the last several years, has been growing at a much faster rate, thus giving HUL higher profits and a more stable position in the market.
How HUL Makes Money?
Moving on, this is the part that I am sure you are waiting for, you know, how HUL turns everything it does into a profit.
1. Product Sales Across Categories
About HUL’s revenue mainly comes from the sale of products in its three main categories, like Home Care, Beauty & Personal Care, and Foods. Their extensive distribution network makes sure that these products reach every nook and corner of India, you know, from every metro city to small villages out there.
2. Premiumization Strategy
HUL has been concentrating on introducing luxury editions of daily-use products. For instance, extravagant shampoos, skincare products, or limited tea and coffee blends. These deluxe products are priced higher and hence attract better margins, which in turn facilitates HUL to increase its profitability.
3. Constant Innovation
HUL is constantly upgrading and revamping its product range. By introducing new fragrances, new pack sizes, or new product formats, the innovations lure more customers and also repeat the purchasing behavior of existing customers; hence, the whole process leads to an increase in revenue manyfold over and over again.
4. Smart Pricing and Pack Sizes
HUL adopts a pliable pricing plan. There are small, reasonably priced packs available for money-saving buyers and bigger or luxurious ones for people who don’t mind spending more. By doing this, HUL serves all customers, and at the same time, people are softly persuaded to go to higher-value products.
5. Efficient Supply Chain and Scale
HUL benefits from economies of scale due to such a large-scale operation, which means that they are capable of producing and distributing more at the same time they keep their costs lower. And without a single doubt, this very saving in costs is a very important factor in the company being able to maintain its profit margins at a high level despite the increases in the prices of raw materials.
6. Digital Distribution (Shikhar App)
The Shikhar app is a tool that makes the ordering process easier and quicker for shopkeepers. The faster the order is placed, the faster the goods get resupplied, which implies that the shopkeepers have more products to sell, and this, in turn, directly increases HUL’s revenue.
Financial Performance (FY 2023-24)
In the fiscal year 2023-24, HUL recorded a revenue of ₹59,579 crore. Despite the price drops in some product segments, they maintained a strong 23.8% EBITDA margin, which was largely the result of premium products, tight cost control, and operational efficiency.
What to Watch Ahead
In the future, HUL’s growth strategy is very obvious, like first of all, more premium products, continuous innovation, and expansion of digital and e-commerce channels. Retailers will continue to get more benefits from their interaction with HUL thanks to the Shikhar app, while the company will be making sure that essentials and affordable products are still accessible to everyone.
