HUL Restructures Beauty and Personal Care Business
Hindustan Unilever (HUL), India’s leading consumer goods company, is undergoing a strategic split of its second-largest business segment, Beauty and Personal Care (BPC). This move is aimed at addressing the growing competition from direct-to-consumer and digital-first brands that have become formidable challengers in recent years.
BPC Division Segregation
The BPC division, contributing 37% to the total revenue with a reported FY23 topline of Rs 21,831 crore, will now be divided into two distinct entities: Beauty & Well-being (B&W) and Personal Care (PC). The decision to split comes as a response to the evolving market dynamics, allowing HUL to focus more effectively on each segment.
New Leadership Appointments
To oversee the operations of the segregated divisions, HUL has appointed two seasoned leaders. Harman Dhillon will head the Beauty and Well-being division, while Kartik Chandrasekhar will lead the Personal Care business. Notably, Madhusudhan Rao, the former executive director of B&W and PC, has opted for retirement, and these changes will come into effect on April 1, 2024.
Chief Digital Officer Appointment
In line with its commitment to digital transformation, HUL has appointed Arun Neelakantan as its Chief Digital Officer. Currently serving as the Vice President of Digital Transformation and Growth, Neelakantan’s new role takes effect from January 1. This strategic move reflects HUL’s dedication to driving digital initiatives within the company.
Alignment with Unilever and Digital Focus
Analysts observe that HUL’s new management structure mirrors that of its parent company, Unilever. Unilever also separates Beauty and well-being and Personal Care into distinct divisions. Notably, Unilever has identified digital as a key pillar of its business, with digital commerce contributing 15% to its total revenue, showcasing a broader industry trend toward digitalization.
In summary, HUL’s restructuring is a proactive response to the changing market landscape, with a clear focus on optimizing operations and leveraging digital strategies to stay competitive in the evolving consumer goods industry.
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