Rohit Jawa takes charge as HUL CEO amid challenges of weak demand and rising competition

Rohit Jawa has taken over as Hindustan Unilever's new Managing Director and CEO, after Sanjiv Mehta retired after serving as the company's head for a decade.

Jawa's association with Hindustan Unilever dates back to 1988 when he joined the company as a trainee. Jawa previously held the position of Unilever's chief of transformation. Throughout his career, he has primarily focused on Asian markets.

Notably, during his tenure as Chairman of Unilever China, he successfully elevated the country to become the third-largest market for Unilever globally. Similarly, as Chairman of Unilever Philippines, he played a pivotal role in positioning the business among Unilever's top 10 markets.

Assuming the role of Managing Director and CEO, the 56-year-old Jawa faces the formidable challenge of navigating a landscape characterised by weak demand conditions and intensifying competition. While the country's inflation is gradually subsiding, the near-term outlook for the industry remains uncertain. Jawa will need to focus on revitalising volume-led growth, restoring gross margins, and mitigating the impact of sustained high costs.

Furthermore, the recovery of consumer demand, especially in rural areas, has yet to reach its full potential. Although Hindustan Unilever has expressed confidence that the worst is behind them, the threat of erratic weather patterns and the forecast of an El Nino phenomenon continue to hinder rural recovery.

Additionally, the company faces increased competition, particularly with the entry of Reliance's FMCG division and the emergence of numerous direct-to-consumer (D2C) brands.

Industry experts emphasise that for Hindustan Unilever to embark on its next phase of growth, scaling up recent acquisitions will be vital, alongside a continued focus on exploring inorganic opportunities. These strategies will enable the company to consolidate its market presence and maintain a competitive edge in the ever-evolving consumer goods landscape.