Nitin Paranjpe

The decision to increase royalty to 3.45 per cent to parent Unilever was taken after a detailed evaluation and due diligence, Hindustan Unilever Ltd Chairman Nitin Paranjpe said on Monday. Earlier this year, leading FMCG maker Hindustan Unilever Ltd (HUL) increased the royalty paid to Unilever PLC to 3.45 per cent of the total turnover, which will be effected in phases over the next three years. Earlier, this was 2.65 per cent. While addressing the shareholders in response to a question about the rationale of such an increase, Paranjpe said the change was made "after plenty of due diligence and satisfying ourselves that we are getting adequate value for this payment that is royalty payment which is being made". Before this, the company has also looked at the royalty paid by other FMCG companies to their parent global firms, he said. The contract terms that "we have got, were subjected to a detailed evaluation and due diligence first by a senior team from within the company. And the

Paranjpe said that HUL is well-placed to partner the India growth story and is committed to playing its role in creating a sustainable and equitable future

Country going through probably the most difficult economic situation, says chairman

HUL also said that notwithstanding these near-term challenges, the Indian FMCG sector offers significant potential for growth

Consumer goods company plans a new organisation model that will reduce senior management roles by around 15%

He is known as a go-getter who has delivered across roles he held within the company

Once the youngest CEO of HUL, Paranjpe will be heading the global FMCG giant's merged foods division