Inside Hindustan Unilever's New Indian Lighthouse Factories

The World Economic Forum (WEF) has announced 16 new awards to the Global Lighthouse Network, bringing the total to 238 sites around the world. 

Two of these factories belong to Hindustan Unilever Limited (HUL), recognised for sustainability and supply chain resilience. 

Magnetic levitation manufacturing technologies and AI-enabled water management are just some of the technologies behind these new awards, the WEF says.

"The newest Lighthouse sites show how intelligence is becoming embedded into the fabric of operations, enabling organisations to respond faster, learn continuously and unlock new levels of performance across their value chains," explains Kiva Allgood, Managing Director at the WEF. 

Priya Nair, CEO and Managing Director of HUL, says: "We believe growth and sustainability must progress together.

"This is a testament to the passion and innovation of our teams and reinforces our ambition to build an AI-powered organisation that delivers superior value for consumers while contributing positively to society and the planet.”

Sustainability at the Sonepat factory

HUL's factory in Sonepat, Haryana was first recognised in 2024 for its end-to-end value chain.

Technologies helped it to improve service levels by 18% and cut factory conversion costs by 40%. Implementing lights off manufacturing helped to support an 86% reduction in product defects.

The region now faces groundwater depletion and carbon-intensive energy use.

In 2026, the factory has been recognised again for its sustainability efforts, using AI-led energy management, IoT-enabled cleaning systems and a transition to renewable energy use. 

The site has seen a range of improvements from these, including:

• improving energy efficiency by 29%
• reducing raw material waste by 58%
• lowering Scopes 1 and 2 emissions by 99%
• recharging 100 times the amount of groundwater used.

"By leveraging AI, advanced analytics and digital technologies, we are building end-to-end capabilities that can respond dynamically to changing demand while reducing our environmental footprint," says Yogesh Mishra, Executive Director of Supply Chain at HUL.

Agility at the Haridwar factory

HUL's plant in Haridwar, Uttarakhand produces a wide range of FCMG, including hair care, skin care and personal care products. 

It has been recognised for supply chain resilience after a digital transformation effort that changed the factory from large-scale manufacturing into small-batch production. 

The site was facing a 50% increase in SKUs and a fourfold rise in demand volatility, driven by ecommerce and smaller order sizes.

HUL deployed what it describes as an "Agentic AI-powered Supply Chain Nerve Centre" that tracks market demand and automatically adjusts production. 

This technology has reduced response times by 72% and continued an on-time-in-full delivery rate of 99%. 

FMCG in India

According to the India Brand Equity Foundation, the Indian FMCG market hit US$289.12bn in 2025 and is projected to reach US$642.9bn by 2030.

Between 2021 and 2025, the country's quick commerce section reached a 110% CAGR, hitting US$7.1bn in financial year 2025. 

Platforms offering these quick deliveries now account for up to 75% of online grocery orders, an increase from 35% in 2022. 

Because consumers now expect hyper-fast delivery of a wider variety of items, manufacturers need to handle complex, fragmented demand.