The Hindu Business Line : HLL rejigs management structure

IN tune with moves outlined in December 2005, Hindustan Lever Ltd (HLL) on Wednesday announced further changes to management structure that would continue its emphasis on unified operations.

Functions such as supply chain, sales and customer development, new ventures and marketing services would be headed by executive directors as would divisions such as Home and Personal Care, Speciality Exports and Foods.

The new Management Committee (MC), headed by Mr Douglas Baillie as the CEO, would take over on March 1. "A single chain of command through the CEO will ensure the benefit of synergies across businesses,'' the company said.

"The company's focus would be competitive growth. We would really concentrate on growing the company as one unit. We would also focus on growing our market shares," Mr Baillie said at a media meet here on Wednesday.

The new members inducted into the MC are Mr Sanjay Dube as Executive Director - Sales & Customer Development, Mr Dhaval Buch as Executive Director - Supply Chain, Mr Anoop Mathur as Executive Director - Speciality Exports and Mr Nitin Paranjpe as Executive Director - Home & Personal Care. Mr Sanjiv Kakkar has been appointed as Executive Director - Foods, responsible for marketing and strategy, with effect from March 1. He will succeed Mr S. Ravindranath, on his retirement. Mr Dalip Sehgal will continue as Executive Director - New Ventures and Marketing Services and will report to Mr Douglas Baillie.

Mr M.K. Sharma will continue as Vice-Chairman with operational responsibilities for HR Legal, Secretarial, Corporate Communications and Corporate Affairs. Mr Sundaram will continue as Finance Director and Mr S. Ravindranath as Managing Director of Foods. They will be a part of the Management Committee reporting to Mr Baillie.

"The business directors will have profit & loss responsibility for their businesses to provide for a decentralised and simplified decision making structure," the company said.

Mr Harish Manwani, President, Unilever Asia & Africa and Chairman, HLL, said that the main three objectives behind these changes are to use the scale and might of HLL in every part of the business, strengthen HLL's `go to market' capabilities and brand building capabilities and deepen functional excellence in finance, corporate affairs and legal areas.

"The new structure relies on interdependence. This structure takes HLL into the next logical step," Mr Manwani said.

HLL has been reporting a growth in net profits in the last two quarters after sharp declines previously. However, sustaining growth amidst stringent competition would be the main focus of the FMCG major. "We will continue to work the entire pyramid. Our strategy is to look at a stratified portfolio in all our segments," Mr Manwani said.

Shares of HLL moved up by Rs 6.50 to Rs 194.75 on BSE.