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Global CEO Magazine:
Restructuring at HLL-The management control system perspective
 
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HLL has been passing through a rough phase since quite some time. This resulted in the inevitable restructuring at the various levels of the FMCG behemoth. This article draws a retrospective analysis of the restructuring at HLL.

They say when the going gets tough, the tough gets going. They indeed do; especially when formidable challenges in the rapidly changing business environment stare them in the face. The Indian fast moving consumer goods behemoth Hindustan Lever Ltd. (HLL) announced on April 15, 2004 a major restructuring of its then existing five businesses in two separate divisions - Home and Personal Care (HPC) to be headed by Arun Adhikari as the new Managing Director- HPC, and Food to be headed by S Ravindrananth as the new Managing Director-Food. The new HPC division would integrate Soaps and Detergents business with Personal Products business and Food division would integrate Beverages, Foods, Ice Cream and Confectionary businesses. HLL has thus emulated what its parent Unilever put in place2 in February 2000.

HLL also announced that MS Banga, its present Executive Chairman, was concurrently appointed Group Business President of the Anglo-Dutch parent Unilever PLC's Home and Personal Care (HPC) - Asia Division. As a result, Banga would cease to be a whole time employee of HLL with effect from July 1, 2004 though he would remain the non-executive chairman of HLL.

 
 
 

 

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