Hindustan Unilever Doubles Down on Horlicks, Boost for India Growth Amidst Market Caution
Hindustan Unilever (HUL) is recommitting to its Horlicks and Boost nutrition drinks in India, targeting revitalisation and adult nutrition expansion despite subdued FMCG demand.
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Mumbai, India — 14 May 2025
Hindustan Unilever Limited (HUL) is strategically re-prioritising its Nutrition Drinks portfolio, specifically Horlicks and Boost, as key growth drivers for the Indian market, despite reporting a subdued 2% underlying sales growth and 5% profit after tax growth for FY2024. HUL CEO Rohit Jawa indicated persistent cautiousness regarding overall Fast-Moving Consumer Goods (FMCG) demand trends in India, attributing it to commodity price volatility including inflation in palm oil, tea, and coffee, alongside rupee depreciation against the dollar. This backdrop underscores the critical nature of HUL's renewed focus on these brands, acquired five years ago.
Jawa noted that while significant cost synergies have been achieved, leading to strong profitability percentages within the Nutrition Drinks category, driving overall category consumption remains a challenge. HUL's deep analysis has identified three core strategies: first, to revitalise Horlicks by enhancing its contemporary relevance and addressing health and credibility barriers; second, to double down on the Adult Nutrition business through increased medical marketing and chemist engagement; and third, to leverage Boost's dual positioning as a chocolate and energy drink, particularly in ready-to-drink formats for geographical expansion. HUL CFO Ritesh Tiwari elaborated on pack price architecture adjustments, specifically narrowing the price gap between individual sachets and larger packs to encourage consumer upgrade pathways. Early impacts from this strategy are already being observed.
What this means for India
Indian brand owners and manufacturers in the health and nutrition segment should anticipate intensified competition from HUL's renewed focus on Horlicks and Boost. The planned investment in medical marketing and chemist channels by HUL will elevate the cost of market entry and competitive positioning for smaller players, potentially compressing margins for those unable to scale distribution or marketing spend. Reformulation windows for existing products may open as HUL aims to make Horlicks more 'contemporary', setting new benchmarks for nutritional relevance and credibility. Procurement leads should monitor commodity price trends (palm oil, tea, coffee) which HUL highlighted as volatile, directly impacting input costs and manufacturing MOQs for similar product lines. New product development should consider the growing emphasis on adult nutrition and ready-to-drink formats, aligning with HUL's strategic direction to capture category growth.
HUL's strategy also includes broader ambitions for its Foods portfolio, particularly expanding the Kissan brand into diverse Indian cuisine occasions and mini-meals. The company projects a gradual improvement in growth trends, with the first half of FY2026 expected to outperform the latter half of FY2025 due to portfolio transformation and anticipated macro-economic improvements like monetary stimulus, tax relief, and stable food and crude inflation. This forward-looking outlook from a market leader provides a crucial benchmark for the Indian supplement and food industry regarding market recovery and strategic positioning.
This trend is being actively addressed by UK manufacturing partners including Supplement Factory.