India's Unilever sees strong demand; appoints new CEO

MUMBAI (Reuters) - Hindustan Unilever Ltd, India's top consumer goods maker, expects demand for its products to remain strong, offsetting some of the pressure from high commodity prices, its chairman said on Thursday.

The company, 52 percent-owned by Anglo-Dutch Unilever Plc, is battling high prices of key inputs including wheat, palm oil and coffee, and also faces greater competition.

"Higher commodity prices are a reality," Harish Manwani said at a news conference to announce the appointment of Nitin Paranjpe as the firm's new managing director and chief executive officer, subject to shareholders' approval.

"But we've tided over them with a judicious mix of price action, and cost and business efficiencies. And the good news is, demand is sustaining. We're not seeing any slowdown as yet in the categories we are present in," he said.

Hindustan Unilever has been spinning off some smaller units to focus on its core portfolio that includes Lux soap, Surf detergent and Lipton tea.

Paranjpe, who was earlier executive director of Hindustan Unilever's home and personal care division, will succeed Douglas Baillie, who becomes head of Unilever in western Europe.

Fears of a downturn in markets like the United States and Europe may drive shoppers there to switch to cheaper options in foods and personal care products. But demand in markets such as India and eastern Europe could limit the damage.

Manwani, currently head of Asia, Middle East and Africa for Unilever, will lead the newly expanded region including central and eastern Europe. The region is home to "the biggest growth markets for Unilever", he said.

"They will account for the bulk of growth," he said.