The Hindu Business Line : HLL goes for business rejig, installs new management team

FMCG leader, Hindustan Lever Ltd (HLL), today announced major changes in the management and organisational structure in a bid to provide sharper focus on key brands and ensure better deployment of resources.

Mr M.S. Banga, Chairman, HLL, has been appointed as the Business Group President of Unilever's $6-billion home and personal care (HPC) business in Asia.

He will, however, continue as non-executive Chairman of HLL.

At HLL, a four-member team called National Management headed by Mr M.K. Sharma, Vice-Chairman of the company, will be at the helm of affairs.

The other members of the team are Mr D. Sundaram, Director - Finance & IT; Mr Arun Adhikari, Managing Director - HPC; Mr S. Ravindranath, Managing Director - Foods.

Mr Aart Weijburj, Director (Detergents), and Mr Guninder Kapur, Executive Director (Foods), will be joining HLL's parent company.

The National Management will have the responsibility for HLL's performance and results and overall coordination of the divisional structure and corporate, the company said in a news release.

The company's board, which met today, approved the new business and management structure, ahead of its next meeting on April 29 scheduled to announce the first quarter results.

The FMCG businesses will be consolidated to form two divisions - HPC and Foods. HPC will include soaps, detergents and personal products, while Foods Division will include beverage, foods, ice-cream and confectionery businesses.

For the year-ended 2003, HPC contributed Rs 6,734.08 crore to the turnover; Foods contributed Rs 1,692.81 crore and exports Rs 1,246.30 crore.

In percentage terms, HPC's share to the topline is around 70 per cent, foods 20 per cent and non-FMCG at 10 per cent.

According to the company, Mr Banga will have an overall leadership and responsibility for the HPC business of Unilever in Asia covering India, China, Japan, Korea, Vietnam, Australia, New Zealand, the Philippines, Indonesia, Malaysia, Singapore, Hong Kong, Taiwan, Thailand, Pakistan, Bangladesh, Sri Lanka and Nepal.

New ventures and non-FMCG businesses comprising plantations and speciality exports will continue to be headed by three Executive Directors - Mr Dalip Sehgal (new ventures), Mr Satish Dhall (plantations) and Mr Anoop Mathur (technology and speciality exports).

They will report to Mr Sharma, who will also be responsible for human resources, marketing services, corporate affairs, corporate communication, technology, and legal & secretarial functions.

When contacted, Mr D. Sundaram said the new set up was aimed at simplifying the organisational structure and to have a focused approach to accelerate business growth.

"Simplicity is the hallmark of our organisation and the changes will help better deployment of resources,'' he said.

The share price of HLL dipped to Rs 150.65 from the previous close of Rs 152.25 on the Bombay Stock Exchange.

FOR CLEARER FOCUS

* All FMCG businesses being consolidated under two divisions - Home and Personal Care (HPC) and Foods

* HPC to include soaps & detergents and personal products; Foods willinclude beverages, foods, ice cream and confectionary businesses.

* M.S. Banga appointed as Business Group President of Unilever's $6 billion HPC business in Asia. He remains non-executive Chairman

* HLL will have a four-member national management team headed by Mr M.K. Sharma, Vice-Chairman of the company.

* New ventures and non-FMCG businesses - plantations, speciality exports - will be headed by executive directors.

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