At the 92nd Annual General Meeting of Hindustan Unilever Limited (HUL) held today, Chairman Mr. Nitin Paranjpe underscored the pivotal role of corporate India in shaping a developed, inclusive, and environmentally responsible nation. Addressing shareholders, Mr. Paranjpe stated, “To create a developed India, India Inc. must play a crucial role in ensuring the nation’s growth is inclusive and environmentally responsible.” He highlighted how HUL is actively navigating short-term challenges while aligning with the country’s long-term aspirations.
In his speech titled ‘Building a Winning Business in an Aspiring India’, Mr. Paranjpe reflected on the evolving business landscape, noting that while India offers immense opportunities, it is equally important to address the challenges that accompany this growth.
India – Growing amidst turbulence
Elaborating on the India growth journey and the nation’s Viksit Bharat vision, Mr Paranjpe said, “several tailwinds will help achieve this, including a strong digital infrastructure, a conducive policy environment, and a burgeoning young population.”
He called out India’s Digital Public Infrastructure as one of its greatest future advantages and hailed the Open Network for Digital Commerce (ONDC) for levelling the playing field for kirana walas and retailers across the nation. At the same time, he mentioned that getting sellers and resellers to leverage e-commerce and improve India’s e-retail penetration is a tall order.
Mr Paranjpe said, “A positive policy environment focused on growth and prosperity for all, serves as India's second growth tailwind,” lauding the policy actions taken over the last decade designed to provide a boost to research, development and the India Inc.
Citing India’s growing working age population as the third tailwind, Mr Paranjpe noted that this young population needs to be nurtured effectively. He said, “This is mission critical and will prove crucial in achieving the Viksit Bharat ambition by enabling meaningful employment, driving up consumption and contributing to the economy.”
He inferred, “To create a developed India, we must chart a path that prioritises economic growth alongside environmental sustainability and social progress.”
Unlocking a billion aspirations
Talking about HUL, Mr Paranjpe highlighted the company’s new strategy, ‘ASPIRE: Unlocking a Billion Aspirations’. He then talked about the core strengths that have helped the company serve the nation for more than 90 years. “We have always listened closely to our consumers, rooting ourselves in the very cultural fabric of India,” he said and added that consumer-centric and superior product innovation, world-class manufacturing and a robust distribution network have been the company’s competitive advantage.
“But India is changing faster than ever. Consumers today are more aspirational, with sentiments, tastes, and preferences evolving rapidly,” he cautioned, and added, “As a company, we have become more obsessive about "sensing" what consumers want and need, and "delivering" at the right place and time.”
He quoted examples from the HUL business to highlight how the Company has been transforming to address evolving consumer needs. “We recently developed Stratos, a first-of-its-kind skincare innovation. This technology, certified by the Skin Health Alliance UK and the British Skin Foundation, took five years to develop, with over 20 patents filed,” he explained.
He moved on to talk about how HUL is digitising its Supply Chain to ensure a steady supply of superior products for its consumers. He also spoke about the evolving non-linear shopper journey across traditional, modern and online trade, and added, “To ensure a seamless experience both offline and online, we are leveraging advanced technology stacks and creating a singular data lake for better decision-making and execution in the marketplace.’
Talking about new age marketing campaigns, Mr Paranjpe mentioned, “We (HUL) have significantly boosted digital marketing investments; today, 40% of our spending is on digital media.”
Sustainability and culture
To underline the HUL strategy, Mr Paranjpe talked about the key pillars of sustainability and culture. “We realise that climate change and societal concerns will continue to affect businesses in the long term, unless we become a part of the solution,” he said and explained how HUL will focus its efforts more on four priority areas that need urgent action: Climate, Nature, Plastics and Livelihoods.
He emphasised the need to have the right talent to win in the new world and said, “We truly believe that market leadership follows thought leadership and fosters a culture that enables freedom of thought and ideas, helping us win in the future.”
He concluded by saying that despite the incomprehensible external context, the Indian economy appears poised to continue on its path to sustainable and inclusive growth. He assured shareholders that HUL is building capabilities to cater to the needs of an evolving and aspiring India. “After all, we have always believed that what is good for India is good for HUL.”
Read the full speech here: https://www.hul.co.in/news/agm-speeches/