5 days ago
HUL's Surf Excel liquid detergent eyes premium laundry segment with new product
New Delhi: Hindustan Unilever Ltd (HUL), a market leader in India's fabric cleaning segment, has launched a new, premium washing liquid variant under its Surf Excel brand, targeting 5% users of liquid detergents to embrace its product.
The move comes as Surf Excel, already HUL's largest brand, surpassed ₹ 10,000 crore in sales last fiscal year.
The launch reinforces a growing trend of consumer preference for premium products within the laundry market, where liquid detergents are growing four times faster than the overall laundry cleaning market.
The innovation, dubbed "Wonder Wash," was initially launched last year in the UK and China by HUL's British parent Unilever, citing a "seismic shift happening in the world of laundry." The product is designed specifically for short cycles and performs in just 15 minutes.
Globally, the category is predicted to be worth €2 billion by 2026.
In India, it will be sold as Surf Excel Matic Express. It sits at a price premium of 15% over a Surf Matic Liquid.
In India, liquids currently account for 10% of the overall laundry cleaning market, which is still dominated by bars and detergent powders.
'Liquids are the fastest growing segment in this market, where the liquids growth is upwards of four times than the rest of the category. The contribution of liquids, overall in the market, is accelerating. But at this point it would be around 10%. Penetration in some South Indian states, which adopted liquids much earlier, is upwards of 60% in urban geographies—i.e. usage at least once a year,' Srinandan Sundaram, executive director, home care, HUL, said in an interview with Mint.
Affluent consumers are increasingly purchasing more premium products due to expanded wardrobes and greater use of washing machines. Out of India's 304 million households, 68 million of these use washing machines, and of those, 17 million currently use washing liquids.
'We are seeing more consumers shortening their washing cycles,' Sundaram added. 'Our lens on this launch is to see heavy liquid users upgrading to get a superior experience -people who are using an Express cycle in the washing machine, and those who are also using liquid as the predominant wash solution. We don't intend this to be a short-term launch; this is a multi-year platform for us. We'd be very happy if we are able to get five percent of liquid users to try the new product,' he said.
Home care is HUL's largest segment, with annual revenues of ₹ 22,972 crore in FY25, a 5% increase from the previous year.
Besides Surf Excel, the company also sells Wheel and Rin laundry wash brands, Comfort fabric conditioner, Vim utensil cleaner, and Domex toilet and floor cleaners.
In the March quarter, the home care segment reported mid-single-digit volume growth, led by its double-digit growing liquids portfolio.
HUL has basically led the premiumization of the laundry portfolio through new formats and product upgrades, competing with P&G India, which sells the Ariel and Tide brands.
In 2020, HUL launched Surf Excel Smart Shots (capsules), its most premium laundry product, and relaunched them earlier this year.
According to a company presentation in November, household penetration of Surf Excel liquids quadrupled between calendar years 2019 and 2023, while the turnover tripled. Similarly, between 2023 and 2024, the penetration of Surf Excel Easy Wash Powders jumped four times, and turnover grew tenfold.
Abneesh Roy, executive director, Nuvama Institutional Equities, said, 'HUL has seen big success in laundry and its premiumization. This launch will further help in that. With Priya Nair back at the helm as managing director, her past success in heading this business will also help.'
Nair, the recently-appointed chief executive officer (CEO) and managing director (MD) of the company, previously served as executive director, home care, HUL, between 2014 and 2020. During her tenure, HUL prioritized building future formats in the home care segment, especially liquid detergents in laundry, with Surf Excel launching the first liquid detergent in the category, according to a July report by Motilal Oswal.
Nair also focused on growing the fabric conditioner market in India.
For the new launch, HUL has partnered with cricketer Jasprit Bumrah for an ad campaign.
The product will be available in general trade and modern trade outlets across South India, and nationwide via e-commerce and quick-commerce platforms.
