HUL Surges 5% As Priya Nair Becomes First Woman CEO: Why Markets Are Backing The FMCG Queen

Last Updated:July 11, 2025, 11:30 IST

Nair will become the first female MD & CEO in HUL’s 92-year history. She is currently the President, Beauty & Wellbeing since 2023

Shares of Hindustan Unilever Ltd (HUL) surged nearly 5% to Rs 2,518.65 on BSE after the company announced the appointment of Priya Nair as its first woman CEO, a move that has electrified Dalal Street and signals a dramatic shift in India’s most closely-watched consumer goods company.

Nair will become the first female MD & CEO in HUL’s 92-year history. She is currently the President, Beauty & Wellbeing since 2023, where she managed a €13.2 billion business with hair and skin care brands including Dove, Sunsilk, Clear, and Vaseline.

The appointment of 53-year-old Priya Nair as the new CEO and MD of Hindustan Unilever Ltd (HUL) comes at a pivotal moment. With nearly three decades at HUL, Nair’s elevation signals a bold move to counter sluggish growth and mounting pressure from nimble D2C competitors and emerging new-age brands.

Priya Nair: A Proven Turnaround Specialist

Investor optimism is rooted in Nair’s track record of turning underperforming segments into high-margin growth drivers. As Executive Director of Home Care (2014–2020), she spearheaded a transformation that lifted segment EBIT margins by 570 basis points—from 13.1% in FY14 to 18.8% in FY20. This turnaround played a key role in raising HUL’s overall EBIT margin from 15.0% to 22.3%.

Nomura highlighted the leadership transition as a positive signal. “We believe this change of guard will provide HUL with the required boost to navigate competitive challenges, accelerate digital transformation, and tap into India’s evolving consumption story,” the brokerage said in a note.

From 2020 to 2022, as Executive Director of Beauty and Wellbeing, Nair led a strategic pivot towards premium categories. The share of premium segments in HUL’s portfolio rose from 20% to 26%, aligning with Indian consumers’ growing appetite for higher-value offerings.

Currently, she serves as Unilever’s Group President for Beauty & Wellbeing, overseeing a €13 billion portfolio across more than 20 markets. Her global exposure and category expertise are expected to benefit HUL’s broader growth ambitions.

The leadership change aligns with Unilever’s renewed focus on India. Global CEO Fernando Fernandez recently reaffirmed India as one of the company’s two anchor markets, echoing the “double down on India” strategy announced in November 2024.

Nomura noted, “We see this change as Unilever’s strong commitment to driving performance from India.”

Leadership Shift Amid Growth Concerns

Nair takes over from Rohit Jawa, who is stepping down before completing his five-year term, having navigated HUL through a volatile macro environment since his appointment in June 2023.

“Rohit steered the company well during a tough period,” said Abneesh Roy, Executive Director at Nuvama Institutional Equities. “With improving volumes and stabilising outlook, we remain confident in HUL’s structural story.”

Over the past two years, HUL’s growth has been muted, with volume, revenue, and earnings rising just 2–3% annually. Competition from agile startups has intensified, particularly in beauty and personal care segments.

Despite recent headwinds, analysts remain optimistic. Nomura has a “Buy” rating on the stock with a target price of Rs 2,600, valuing it at 50x FY27 P/E, and projects an EPS CAGR of 8.5% for FY25–28. It also flagged attractive valuations, with HUL currently trading at 1.5 standard deviations below its 5-year average P/E.

JPMorgan is similarly upbeat, maintaining an “Overweight” rating and a Rs 2,500 target. “Nair’s category expertise and growth focus will help HUL sharpen execution and lift volumes,” the brokerage said.

HUL shares surged 4.7% to Rs 2,521 following the announcement, pushing the FMCG giant’s market capitalisation closer to Rs 6 lakh crore. With a five-year term set to begin on August 1, 2025, investors will watch closely to see if Nair can replicate her success at the helm—and reignite HUL’s stalled growth engine across its portfolio.

Aparna Deb

Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a…Read More

Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a… Read More

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