(Reuters) -Shares of India’s Hindustan Unilever closed 4.6% higher on Friday, a day after the Dove soapmaker named a senior executive at its parent Unilever with “a strong track record” as its chief executive.
Priya Nair, president of Unilever’s beauty and wellbeing business, will take over as CEO of HUL on August 1.
Nair “comes with a strong track record,” Citi Research said in a note, adding it will watch for any strategy refresh after a period of relatively “tough performance” by HUL.
Management changes in the Indian consumer space have led to share rallies and performance improvements at firms such as Godrej Consumer and Colgate-Palmolive India, Citi said.
Separately, CNBC-TV18 reported, citing sources, that HUL’s CFO Ritesh Tiwari was likely to step down and be moved to a global role.
In an emailed response to Reuters, HUL said, “Ritesh Tiwari continues to be the executive director, finance, IT & chief financial officer of the company,” adding that necessary disclosures would be made if there were any developments.
HUL’s shares, rated “buy” on average, have shed a tenth since 2023, after nearly doubling in the prior six years.
The company has struggled to drive sales over recent quarters, with average volume growth of just over 2%, as it faces stiff competition from nimble new-age brands.
Nair will replace Rohit Jawa, who will step down less than two years into his five-year term. The move follows Unilever’s leadership change in February.
Jefferies said the company may need to bring global brands to India as it faces pressure in beauty, foods, soaps and packaged tea categories.
(Reporting by Hritam Mukherjee and Meenakshi Maidas in Bengaluru and Praveen Paramasivam in Chennai; Editing by Nivedita Bhattacharjee and Mrigank Dhaniwala)
