MUMBAI: When sanjeev mehta took over because the MD & CEO of Hindustan Unilever (HUL) in October 2013, the transient given to him by means of then Unilever chairman, Paul Polman, used to be that India should not be dilutive to Unilever in margins. Today, HUL is 500 foundation issues (100bps = 1 proportion level) accretive to Unilever. Having met the ones goals, what influenced him to retire now? Quoting cricket legend Vijay Merchant, Mehta stated, “Leave when people ask ‘why’, and not ‘why not’.” Mehta, 62, who has labored for over 3 many years with Unilever, describes his tenure at HUL as “satisfying”. He will mirror on his subsequent transfer after he passes the baton to his successor Rohit Jawa in june finish. “I am looking forward to my next innings – to do something different. And contribute in a different way. There’s so much more to do in life,” Mehta, who’s already at the forums of Danone and AI, instructed TOI. Excerpts:
What are your ideas as you retire?
We had been a Rs 25,000-crore turnover corporate 10 years again, and now we’re at Rs 58,000 crore, our ebitda (profits prior to hobby, taxes, depreciation and amortisation) has larger by means of Rs 9,600 crore, and our marketplace cap has long gone up by means of 5X to over $70 billion. But extra pleasurable than the numbers is that I’m leaving at the back of an organization in a miles more potent form from all dimensions. We have bolstered our efficiency tradition, our competitiveness, our functions and the groups I’m leaving at the back of – the control committee, as an example – on a person and on a collective foundation could be obviously one of the crucial easiest best groups any corporate or CEO can hope for. for. From those lenses, I will be able to glance again and say it is been very pleasurable.
What philosophy has guided your management taste?
A philosophy I ingrained very deeply when I used to be operating the Unilever industry in Middle East & North Africa right through the Arab Spring is whilst you take care of your other folks, the folks will take care of your small business. It has held us in excellent stead and used to be obvious right through Covid. Second, pursue the ‘tougher proper’ than the simpler trail. Third, what’s excellent for India is excellent for Hindustan Unilever. For a high-performing corporate, it is extraordinarily vital to have a enlargement mindset. I all the time say, first, win the fight of the thoughts prior to you win the fight on the market.
Have you met the objectives you place out to succeed in whilst you was CEO?
I sought after to regain HUL’s standing as some of the precious firms within the nation. The transient given to me by means of Paul Polman (former Unilever CEO) used to be that we will be able to’t be dilutive to Unilever in margins. Today, we’re 500 foundation issues accretive to Unilever.
Any regrets?
No regrets in step with se. Of direction, one all the time feels that we can have achieved extra. One must have a wholesome dissatisfaction with the established order or the achievements. One must all the time be paranoid, be enthusiastic about elevating the bar on enlargement and now not be sitting again to your laurels.
Would you’ve gotten been happier had you left HUL as an absolutely gender-balanced organisation, a goal which remains to be a while away?
We had been at 18% once I joined, and now we’re at 45%. Fifty is a pleasant milestone, however the tradition shift has came about – if it is un-stereotyping or accepting that ladies can do all jobs in addition to males. Now, our focal point is shifting to the blue-collar employees and our box personnel. As a country, we’d like ladies’s participation within the body of workers to no less than double – it’s lately within the 20s. I need an organization like HUL to all the time be a beacon for those practices.
HUL’s quantity enlargement trajectory is a little regarding…
My focal point has all the time been on volume-led winning enlargement, however one must have a look at it within the present context, the place commodity value hike used to be exceptional and it’s nonetheless at increased ranges. When you notice the fee enlargement in our numbers petering out, that doesn’t imply that costs have long gone down, however it signifies that additional building up isn’t taking place. There’s no reason the volumes won’t go back. More so when commodity costs begin to pass down. Grammage additions have now not came about up to we might adore it to be.
But intake conduct typically revert with a lag…
There has been a marked shift out there quantity enlargement. If the costs stay solid, and preferably pass down, there could be a pickup in volumes 1 / 4 or two down the street. It’s tough to expect, however within the subsequent couple of quarters, if this pattern continues, volumes will fortify.
Your recommendation in your successor Rohit Jawa?
He is an skilled chief. He has labored in numerous markets. I’m positive he will do an excellent process. My process is to just give him the viewpoint, the historical past and the insights which I’ve gathered over time, however he’ll convey his personal taste of management and can surely take the industry to new heights.
What are your ideas as you retire?
We had been a Rs 25,000-crore turnover corporate 10 years again, and now we’re at Rs 58,000 crore, our ebitda (profits prior to hobby, taxes, depreciation and amortisation) has larger by means of Rs 9,600 crore, and our marketplace cap has long gone up by means of 5X to over $70 billion. But extra pleasurable than the numbers is that I’m leaving at the back of an organization in a miles more potent form from all dimensions. We have bolstered our efficiency tradition, our competitiveness, our functions and the groups I’m leaving at the back of – the control committee, as an example – on a person and on a collective foundation could be obviously one of the crucial easiest best groups any corporate or CEO can hope for. for. From those lenses, I will be able to glance again and say it is been very pleasurable.
What philosophy has guided your management taste?
A philosophy I ingrained very deeply when I used to be operating the Unilever industry in Middle East & North Africa right through the Arab Spring is whilst you take care of your other folks, the folks will take care of your small business. It has held us in excellent stead and used to be obvious right through Covid. Second, pursue the ‘tougher proper’ than the simpler trail. Third, what’s excellent for India is excellent for Hindustan Unilever. For a high-performing corporate, it is extraordinarily vital to have a enlargement mindset. I all the time say, first, win the fight of the thoughts prior to you win the fight on the market.
Have you met the objectives you place out to succeed in whilst you was CEO?
I sought after to regain HUL’s standing as some of the precious firms within the nation. The transient given to me by means of Paul Polman (former Unilever CEO) used to be that we will be able to’t be dilutive to Unilever in margins. Today, we’re 500 foundation issues accretive to Unilever.
Any regrets?
No regrets in step with se. Of direction, one all the time feels that we can have achieved extra. One must have a wholesome dissatisfaction with the established order or the achievements. One must all the time be paranoid, be enthusiastic about elevating the bar on enlargement and now not be sitting again to your laurels.
Would you’ve gotten been happier had you left HUL as an absolutely gender-balanced organisation, a goal which remains to be a while away?
We had been at 18% once I joined, and now we’re at 45%. Fifty is a pleasant milestone, however the tradition shift has came about – if it is un-stereotyping or accepting that ladies can do all jobs in addition to males. Now, our focal point is shifting to the blue-collar employees and our box personnel. As a country, we’d like ladies’s participation within the body of workers to no less than double – it’s lately within the 20s. I need an organization like HUL to all the time be a beacon for those practices.
HUL’s quantity enlargement trajectory is a little regarding…
My focal point has all the time been on volume-led winning enlargement, however one must have a look at it within the present context, the place commodity value hike used to be exceptional and it’s nonetheless at increased ranges. When you notice the fee enlargement in our numbers petering out, that doesn’t imply that costs have long gone down, however it signifies that additional building up isn’t taking place. There’s no reason the volumes won’t go back. More so when commodity costs begin to pass down. Grammage additions have now not came about up to we might adore it to be.
But intake conduct typically revert with a lag…
There has been a marked shift out there quantity enlargement. If the costs stay solid, and preferably pass down, there could be a pickup in volumes 1 / 4 or two down the street. It’s tough to expect, however within the subsequent couple of quarters, if this pattern continues, volumes will fortify.
Your recommendation in your successor Rohit Jawa?
He is an skilled chief. He has labored in numerous markets. I’m positive he will do an excellent process. My process is to just give him the viewpoint, the historical past and the insights which I’ve gathered over time, however he’ll convey his personal taste of management and can surely take the industry to new heights.