Page 111 - Nuvama | IC Report 2023

INDIA: THE 5D ADVANTAGE

Care to staples such as detergents. In FY12, HUL’s product mix was made up of 22% premium
products; by FY22, it had increased to 33%. Exhibit 7:
How consumer
base upgradation
India is at the lower end of the market Upgrading with new is happening
development curve benefits in India in
detergents
Thailand
China
%Disposable Income spent on Face Care Mexico Australia US More benefits
Vietnam

INDIA Brazil

Low per capita spends

Per Capita Disposable Income Rising income
Source: HUL investor presentation
Automobiles – Bigger is better
Over the last decade, the auto industry has seen a remarkable development. Among cars, the share of
SUVs (proxy for premium consumption) in total sales has gone up from ~15% at the start of the decade
to almost 50% now. As discussed earlier, with expanding incomes, increasingly young population,
rapid urbanisation and large capacity for leverage, we foresee premiumisation taking root across the
consumption basket.
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Exhibit 8:
Share of SUVs
48 in passenger
vehicles in India
(%) 42 has sped up over
last decade
36
30

24
18

12
Sep ’07 Sep ‘10 Sep ‘13 Sep ‘16 Sep ‘19 Sep ‘22
India: SUV share % of passenger vehicle sales
Source: CMIE, Nuvama research

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