Indian consumer goods major Hindustan Unilever said on Wednesday it will invest as much as 20 billion rupees ($220.54 million) to expand manufacturing capacity in its fast-growing premium categories as it navigates margin pressure from rising competition.
The company said it will deploy the investment over two years to scale up capacity in categories such as beauty, wellbeing and home care liquids.
The local unit of UK’s Unilever and home to Dove and Surf Excel brands said the proposed investment aligns with its strategy of focusing on “fewer, bigger bets” and strengthening its presence in high-growth demand spaces.
HUL’s increased push into premium segments comes as the company battles margin pressure. Earlier this month, it reported a 15% decline in quarterly profit, hit by thinner margin as the company cut some product prices to counter rising competition.
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