HUL takes innovation route to tackle competition

HUL takes innovation route to tackle competition
MUMBAI: Unilever CEO Paul Polman wanted to be a priest, but ended up studying economics. Instead of donning vestments and presiding over his flock,
he put on a suit and took to selling nappies and bath soaps for one of the world's biggest consumer products firms. Later on in his career, he did something even more unexpected, at least by Indian standards. Instead of getting bogged down in boring power points and dour dinner boardroom conversations , he put on his climbing boots and took aim at a massive target, Mt Kilimanjaro, Africa's biggest peak, which he conquered some years ago for a charity. Employees and shareholders are already feeling the effects of an evangelising and adventurous spirit coursing through the company. There is a buzz around Unilever these days that is hard to miss. Volumes have grown worldwide if not yet in India, a new management team is in place and a turnaround strategy being put in place seems to be working. Starting last Saturday Mr Polman and top honchos of its Indian subsidiary Hindustan Unilever spent over two days meeting consumers and dealers as India's largest seller of consumers goods soaps and toothpaste seeks to fulfil its parent's mandate to ratchet up growth rates. The maker of well-known consumer brands such as Dove shampoos, Lipton tea and Surf detergent says it has initiated innovation across categories to drive growth to tackle the intensifying competition in the country and to double turnover. The importance of Paul Polman’s visit is clear considering that this is third trip since he took over as CEO. Paul Polman, who hit the road with Harish Manwani, non-executive chairman , HUL and president Asia, Africa, central & Eastern Europe in tow, is believed to have directed the top team to commit higher investments to step up market development activities through product and pricing innovations, primarily at the mass end of the market where HUL has been under pressure. He jokingly said he did not want to focus on beating up Nitin Paranjpe—Hindustan Unilever CEO—or Harish Manwani for a couple of tough quarters faced by HUL. The majority-owned subsidiary of Unilever has disappointed investors with lacklustre results for four quarters. For the quarter ended December 31, its net profit was at the same level as the year-ago period and its topline rose just 4.4%. HUL missed the great bull run of 2003-08 and the stock has given a measly 0.16% return since 2000. The HUL scrip closed at Rs 239.50 up 0.8% in a flat Mumbai market. Mr Polman rattled HUL executives when he described India as an “underperformer” while unveiling Unilever fourth quarter results. But, on Monday with Mr Manwani and Mr Paranjpe at his side he spoke in emollient terms about Unilver’s long history in India and the glorious future that lay ahead.