By Michael Susin

Unilever said it will put India at the center of its new business strategy as it aims to benefit from increasing consumption in one of the world's fastest-growing economies.

In an event with investors, Chief Executive Hein Schumacher on Friday said India is the best opportunity for Unilever over the next couple of years and will be the key for all its group businesses.

He added that India's gross domestic product per capita is estimated to grow to about 4,500 euros ($4,713) by 2033, representing an 85% increase in 10 years.

The consumer-goods giant behind brands such as Dove soap and Knorr stock cubes confirmed the separation of its ice-cream business by the end of next year.

It added that the new organization will consist of four groups, driven by its 30 major brands and operating across 24 key markets, which represent nearly 86% of its total turnover.

Unilever also said it is on track to deliver its 800 million euros ($837.9 million) turnaround program.

The company also backed its midterm targets. It continues to expect underlying sales to grow by a mid-single-digit percentage after the separation of the ice-cream division, supported by underlying volume growth of at least 2%.

It also aims for a modest underlying operating margin improvement, driven by gross margin expansion through operating leverage and productivity improvements.

Schumacher said the company is making further progress in 2024 by stepping up in volume growth while rebuilding its profit margins, and that it expects to return to market share growth in 2025.

Another focus of Unilever is the reinvestment behind its main brands in order to boost turnover with fewer, but bigger innovations. The group seeks to build 10 to 15 product offerings annually that could over time generate about 100 million euros of incremental turnover, Schumacher said.

Shares were up 2.5% at 46.57 pounds. The stock is up more than 20% since the start of 2024.

Write to Michael Susin at michael.susin@wsj.com

(END) Dow Jones Newswires

November 22, 2024 09:58 ET (14:58 GMT)

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