Unilever eyes Hyderabad for global capability center expansion
HYDERABAD, INDIA — Global consumer goods company Unilever is evaluating Hyderabad as the site for a new global capability center (GCC), signaling the city’s rising status as a hub for corporate innovation and technology-driven operations.
In a report from Elets CIO, the discussions took place during the World Economic Forum Annual Meeting in Davos, Switzerland. Telangana Chief Minister A. Revanth Reddy met Unilever Chief Supply Chain and Operations Officer Willem Uijen.
Davos talks: Unilever meets Telangana delegation
During their meeting, Reddy highlighted Hyderabad’s transformation into a major destination for GCCs, pointing to the city’s “robust digital infrastructure, extensive talent availability, and business-friendly policy framework” as key advantages.
According to the Chief Minister’s Office, Unilever expressed interest in assessing the city’s suitability for hosting GCC operations.
The Telangana delegation, which included IT and Industries Minister D. Sridhar Babu and Revenue Minister Ponguleti Srinivas Reddy, also encouraged Unilever to explore manufacturing opportunities in the state’s industrial parks, leveraging Telangana’s expanding industrial ecosystem.
The government demonstrated its dedication to assisting international companies that wanted to invest in both technology and manufacturing by establishing the state as a complete business center.
Hyderabad solidifies status as India GCC innovation hub
The company’s plans to enter Hyderabad came after L’Oréal unveiled the world’s biggest beauty tech innovation center in the city last month, promising to offer jobs to over 2,000 engineers.
The achievement has illustrated how quickly Hyderabad is moving into the wider areas of advanced digital innovation alongside AI-driven technology.
The city’s multinational interest brings together multiple international companies, which boosts its strategic value to compete against traditional centers like Bengaluru and Pune.
“Hyderabad’s rapid growth as a global innovation hub is attracting top-tier multinational corporations across industries,” the Chief Minister’s Office said.
As India’s GCC landscape expands, Hyderabad is emerging as a preferred destination for companies seeking both technological innovation and operational efficiency.
The city’s combination of talent, infrastructure, and government support creates an environment that attracts investment in advanced services, which makes the city a viable competitor to established Asian technology hubs.
Implications for outsourcing and shared services
For the broader outsourcing and shared services sector, Unilever’s interest in Hyderabad signals a maturing market shift: global firms increasingly eye tier-two cities like Hyderabad to host their innovation and operational centers, diversifying beyond traditional locations.
Multinational corporations are also moving away from purely cost-driven outsourcing models toward “insourcing” innovation through GCCs. By establishing captive centers in Hyderabad, companies like Unilever and L’Oréal can retain tighter control over intellectual property and supply chain data while still accessing India’s deep technical talent pool.
This trend places pressure on traditional outsourcing providers to move up the value chain. As India’s GCC landscape expands, the distinction between tech hubs and operational centers is blurring.
Hyderabad’s emergence as a preferred destination suggests that global firms are seeking a “Tier 1” infrastructure experience with the agility of a challenger city, diversifying their risk beyond saturated markets. If finalized, Unilever’s move could trigger a cluster effect, attracting further FMCG giants to the region to capitalize on shared logistics and tech competencies.
