United Spirits is making major changes that will see the company make a clean break from its past and result in about 350 job cuts.
It plans to reorganise itself with fewer delivery heads and at the same time rationalise the structure and reduce the number of brands.
The Diageo-owned liquor major also plans to let go as many as 350 employees following the restructuring.
The company has 5,700 employees now.
A global consultancy firm has been hired to put together a plan to make the company leaner and more nimble in responding to industry challenges.
“United Spirits has undertaken an organisational review to ensure that it aligns its resources behind its performance ambition,” a company spokesperson told BusinessLine .
At the annual general meeting on Thursday, its Chairman said the company plans to hake a relook of its subsidiaries and may rationalise them.
There are plans to close some of them down. “Wherever possible, resources and decision-making will be closer to customers and consumers, enhancing our responsiveness and agility,” the spokesperson said.
While in volume terms, United Spirits leads the race as the largest liquor maker in the country, in value terms, it is competitor, Pernod Ricard is ahead.
USL’s market share is around 43 per cent while that of Pernod Ricard is about 11 per cent.
But Pernod Ricard’s sales and profits per case is higher than that of United Spirits.
The company will base its structure on five pillars to rationalise it brands; get closer to customers and adhere to a strict code of conduct. It has also decided to break down functional silos.
Executive committeeAn eight-member executive committee has already been formed.
The management committee of 20 executives has also been formed which meets every quarter.
The number of reporting layers has also been reduced.
The spokesperson said changes to the company’s structure are being undertaken to make things much more streamlined.
“We are making changes to our structure and the way we work which will simplify our business in pursuit of becoming the best performing, most trusted and respected consumer goods company in the world.”