K.B. Dadiseth Unveils HLL's New Growth Blueprint

Mr. K.B. Dadiseth, who passes on the baton of Chairmanship to Mr. M.S. Banga at the end of this month, unveiled the new growth blueprint today in his last AGM address. Implementation of the strategy, an outcome of the yearlong ‘Project Millennium’ exercise, has already begun.

Mr. Dadiseth said, “Our new growth engines will become thriving businesses of significant size over the next 6 to 8 years. They will help us accelerate new demand at the lower end of the market spectrum and also capture value from shifts in the nature of demand at the upper end. Significantly, Hindustan Lever will make rapid strides in the New Economy, by leveraging the power of Internet technologies in the web-enablement of its existing infrastructure and in launching several new e-businesses.”

Recalling the launch of Project Millennium, he said, “HLL’s vision is to create a self-sustaining virtuous cycle of business growth through people growth. The better we leverage the capabilities of our excellent people, the more certain we are that Hindustan Lever will grow. And the faster the company grows, the more opportunities we can create to attract and retain high calibre people.” The blueprint therefore will sustain HLL’s position as an employer of choice. Equally, it ensures that HLL enables growth through consumer-focussed business structures, appropriate knowledge management and continuing focus on better management of costs.

Among the growth engines, being incubated under the direct oversight of the Board and staffed with handpicked teams, is a specific rural business system, and Internet-based initiatives.

HLL will develop appropriate products for rural India. It will deploy communication and information technology to establish connectivity in the distribution system at a scale never attempted before. Finally, in a win-win partnership, it will join hands with rural self-help groups; the initiative will create critically needed sustainable jobs for thousands of villagers, while for the company it will translate into extending its distribution into hitherto unexplored territory.

HLL has developed a 3-pronged strategy to leverage the Internet. First, the company will Connect. The web-enabled extended supply chain of stockists, suppliers, banks and even potentially top retailers will create the most capital-efficient supply chain optimised for handling product, cash and information flow. Second, HLL will Attract consumers, and further strengthen relationships by becoming the preferred online provider of information, products and services on health, beauty and nutritional needs.

Finally, HLL will Transact, supported by its extensive physical infrastructure. The company is uniquely positioned to create India’s most widespread, robust and efficient ‘click and brick’ business model.

HLL’s aspiration is to leverage its existing infrastructure to build India’s premier web-enabled supply chain that becomes the preferred fulfilment engine for e-commerce products and services. Concurrently, it will build market-leading B2B and B2C businesses in high-potential areas.

Mr. Dadiseth said, “Long-term success depends on winning the ‘war for talent’ -- attracting, developing and retaining the highest quality talent. Historically, we have been an employer of choice. Today, we face a real challenge in sustaining our position and to do this we need to fulfil the expectations of India’s top talent.” HLL has developed a relevant new value proposition, along the dimensions of velocity, meritocracy, flexibility, transparency, and equity in the professional careers of all current and future employees.

Mr. Dadiseth said, “To develop and retain top talent, we have put in place a process which will help identify potential business leaders much earlier in their careers than we did before. They will be placed on a fast track of personal growth. We will also create substantially more opportunities for entrepreneurial leadership for our managers. Already, a number of them are taking charge of the multiple growth engines Project Millennium has spawned.” HLL is also changing its organisation structure, disaggregating into smaller yet independent business units for greater focus. This will provide further business leadership opportunities for managers as and when they are ready, as opposed to when they reach a certain seniority.

HLL is introducing a stock grant scheme this year. “We see it as a powerful motivator for our people and a fundamental driver for institutionalising a growth-seeking culture,” Mr. Dadiseth said.

But, he declared, “We are planning to go a step further by giving people a stake in the wealth they create through their ideas. Our people no longer need to choose between being an employee or being an entrepreneur. If anyone in the company has an idea that is exciting and has business potential, we have established a mechanism — rather like a venture capital fund — which can make that idea a reality. They have to put together a business proposal and present it to the Board. If it sounds promising, the company will be happy to play the midwife by deploying its resources. And the person who conceived the idea will participate in building it and share in its wealth creation. We have already begun to fund projects in this way.”

Mr. Dadiseth said, “Project Millennium will unleash a tidal wave of entrepreneurial energy at Hindustan Lever. The 9 new growth engines are only a beginning. With the growth enablers in place, many others will come to the fore. As our managers get a taste of the various independent leadership opportunities Hindustan Lever can provide, their commitment to the company’s growth will only increase.

“This is my vision for the Hindustan Lever of the new millennium as I hand over the baton at the end of this month. I have enjoyed every day that I have spent in Hindustan Lever. I will depart with the knowledge that the new blueprint for business growth through people growth is well established. I am confident that Hindustan Lever, with its high calibre people under the able Chairmanship of Vindi Banga, the Board and the Management Committee, is on the threshold of a future that is even more glorious than its past,” he concluded.