In a major reshuffle at Hindustan Lever Ltd, M S Banga, who is chairman of the company has been made non-executive chairman with additional responsibility as business group president of Unilever's $6-billion home and personal care business in Asia from July 1.
In a candid interview with Business Standard, Banga speaks about the reason for the reorganisation of HLL's business.
Why this reorganisation?
In the last two-three years, we have been simplifying our brand portfolio. What has been announced today is a logical extension of that. We used to have five business units earlier. We will now have two business units.
What will you achieve with this reorganisation?
The reorganisation will help us simplify and speed up our decision-making process. It will reduce costs and also enable easy transfer of resources from one division to the other.
This will impart greater focus to our businesses and the organisation will be far better geared for growth.
Can such reorganisation lead to confusion since there will be two MDs with no executive chairman in charge?
There is absolutely no scope for confusion. They report to me. And a large proportion of my time will continue to be devoted to overseeing Hindustan Lever.
Have you set any goals for the two new MDs ?
I have told them that they must aim at better execution of strategy to drive higher growth.
What does the whole exercise mean for you?
In my new capacity, I will have to take charge of Unilever's home and personal care business in Asia. This will be my additional responsibility and I will continue to be in charge of Hindustan Lever.
How will that happen with the appointment of MDs and a chairman of the national management committee?
Please remember that both the managing directors and the other directors and members of the national management committee will report to me directly.
The concept of a national management committee has been mooted because in my new role, I will have to travel a lot more. Hence, the national management committee will be able to facilitate the decision-making process when I am away.
Can you give us an idea of your additional responsibilities?
Well, I will look after Unilever's home and personal care business in Asia. This is a huge business, as it accounts for one-third of Unilever's total home and personal care division.
Geographically, the new businesses that will come under my charge include Unilever's home and personal care businesses in Pakistan, Sri Lanka, Bangladesh, Thailand, Indonesia, Philippines, Japan and many other Asian countries. The chairmen of all the companies in these markets will report to me.
Have you set a target for yourself in your new assignment?
I am privileged to have this new responsibility. These are the fastest growing markets. All the companies in these countries are very strong and the challenge would be to grow faster in these markets.
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