HLL chief to target 7-10 % volume growth

HLL chief to target 7-10 % volume growth
ENS ECONOMIC BUREAU

MUMBAI, AUGUST 24: The new chairman of Rs 10,142 crore fast-moving consumer goods giant Hindustan Lever Ltd, has set his goals high on two crucial things: volume growth and bottomline. Manvinder Singh `Vindi' Banga, who recently returned from London after a stint in HLL's parent Unilever, also wants to expand his food business in a big way.

``I will be focussing on increasing volumes and bottomline growth both in home and personal care products apart from the vast opportunities in the foods business,'' said Banga who succeeded KB Dadiseth as the HLL chief earlier this month. The HLL chief is looking for a 7-10 per cent volume growth in the next two years.

``We are seeking to be a youthful company to attract the best talent as the company has to move at net speed to bring about better results,'' he said. ``What has to change is the speed at which we work,'' Banga emphasised. According to him very fast movement in any industry is key. ``We will have to start moving at the speed of the internet, because that is the speed customers are accustomed to today. Further, this speed has to keep pace with the speed of the internet which is ever changing,'' he added.

He reiterated the organisation's commitment to the HR challenge by endorsing internal initiatives in this area which have been spawned over the past one year. These include initiatives aimed at empowering employees with ESOPs and the recently established venture capital fund which aims at giving employees a stake in the wealth that they create through their ideas. On ESOPs, he said the company has plans to link ``individual performance with wealth creation''.

The company, which has a huge dealer network of 7,000 all over India, is planning to set up a special cell called `Hello Hindustan' to invite consumer suggestions pertaining to their products. The move to seek customer feedback was aimed at improving its products continuously so to stay ahead of competition even as it was aiming to seek a sales growth of seven to 10 per cent in the coming few years.

Banga feels there is a huge market which is still not explored fully. ``We need innovations to tap the new markets. What has to change is the speed at which we work,'' Banga emphasised, adding, ``We will have to start moving at the speed of the internet, because that is the speed customers are accustomed to today. Further this speed has to keep pace with the speed of the internet which is ever changing.''

While HLL is preparing for a big push in the food business with the recent takeover of Modern Foods, the tea business has not shown much growth in the last one year. HLL's turnover growth last year was fuelled by a 11 per cent turnover growth in soaps and detergents, 18 per cent in personal products, 67 per cent increase in branded staples and a 10 per cent increase in icecreams. While net profits grew from Rs 805.71 crore to Rs 1,069.94 crore during 1999, net sales registered a modest seven per cent growth to Rs 10,142.49 crore against Rs 9,481.85 crore last year.