The appointment of the 53-year-old industry veteran, who boasts nearly three decades of experience within HUL, comes at a critical juncture as the company battles sluggish growth and intensifying competition from nimble D2C players and new-age brands.
The Nair Track Record: A Margin Miracle
What’s driving investor euphoria is Nair’s proven ability to transform underperforming segments into profit powerhouses. During her tenure as Executive Director of Home Care (2014-2020), she engineered a remarkable turnaround that saw the segment’s EBIT margin skyrocket by 570 basis points from 13.1% in FY14 to 18.8% in FY20, a performance that catapulted HUL’s overall EBIT margin from 15.0% to 22.3%.”We see the appointment of Ms Nair as a positive,” said Nomura in a research note. “We believe this change of guard will provide HUL with the required boost vs peers to navigate competitive challenges, accelerate its digital transformation efforts, and capitalize on the evolving and long-term prospects of the Indian consumption market.”
As Executive Director of Beauty and Wellbeing (2020-2022), Nair orchestrated a strategic shift from value to premium segments, driving 26% of HUL’s portfolio focus towards premium demand spaces, up from approximately 20% in 2020. This premiumization strategy has become increasingly critical as Indian consumers trade up to higher-value products.
Currently serving as Unilever Group President of Beauty & Wellbeing, Nair oversees a €13 billion portfolio spanning Hair Care, Skin Care, Prestige Beauty, and Health & Wellbeing brands across more than 20 markets, giving her unparalleled global exposure that could prove invaluable for HUL’s expansion plans.
Unilever’s India Bet Gets Real
The timing of Nair’s appointment is no coincidence. Unilever’s new global CEO, Fernando Fernandez, highlighted India as one of the two anchor markets for the company’s global portfolio during his first quarter investor call, amplifying the strategy of “doubling down in India” announced during the November 2024 Investor Day.
“We see the change of guard at HUL as Unilever’s strong commitment and seriousness to deliver improvement and outperformance from India,” Nomura analysts noted.
Nair inherits a company grappling with tepid growth. HUL’s volume, revenue, and earnings have grown by just 2-3% over the past two years due to macroeconomic headwinds and an increasingly competitive landscape dominated by agile D2C players and new brands.
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The leadership transition comes as current MD and CEO Rohit Jawa, who was appointed in June 2023, steps down early before completing his five-year tenure.
Despite recent challenges, analysts remain bullish on HUL’s prospects under Nair’s leadership. Nomura maintains a Buy rating with a target price of Rs 2,600, valuing the stock at 50x June 2027 P/E. The brokerage models an EPS CAGR of 8.5% over FY25-28F.
“While HUL has been facing challenges in the recent past, we believe it has strong arsenals to overcome them,” Nomura said, noting that the stock is trading at 1.5 standard deviations lower than its 5-year average P/E and 5% below its 10-year average P/E, providing comfort on valuations.
With Nair set to take the reins on August 1, 2025, for a five-year tenure, all eyes will be on whether she can replicate her category transformation magic across HUL’s entire portfolio and reignite the growth engine that has made it one of India’s most valuable consumer companies.