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There is a sombre mood in the corridors of Hindustan Unilever (HUL), the Indian subsidiary of the world's second-largest consumer goods company, Unilever. One of its most popular executives and the second-most powerful individual at Unilever, Harish Manwani will retire from the company in December. Manwani, 61, who is COO at Unilever, will continue to be the non-executive chairman at HUL, a company where he began his corporate life way back in 1976 after graduating from the Jamnalal Bajaj Institute of Management Studies, one of the oldest management institutes in Mumbai.
As a management trainee, Manwani was diligent and hardworking. He is also regarded as a sharp marketing mind with a sound understanding of emerging markets. This combination of skills - his tendency to put in long hours and come up with good ideas besides being able to deliver on targets - ensured a rapid rise through the ranks to a position second only to Unilever CEO Paul Polman.
Before his elevation to the number two slot in September 2011, Manwani was running Unilever's Asia, Africa, Central & Eastern Europe and West Asian regions, which form over 40 per cent of its business. Unilever deviated from standard practice to accommodate him as COO in an affirmation of his management skills. It was clear that Unilever was counting on his strengths to help lead the company with Polman at a time when the Anglo-Dutch major was looking to double the turnover in a decade. In many respects, Polman was leaving the execution of his vision to Manwani and freeing himself up to focus on broader strategy , company observers say.
Manwani hasn't disappointed on that count. From 52 per cent three years ago, the revenue from developing and emerging (D&E) markets is 57 per cent of Unilever's revenues today. The London-and-Rotterdam-based company, which closed the 2013 calendar year with sales of $62.25 billion, is looking to increase this number in the coming years.
Manwani's career has other milestones too. He joined the HUL board of directors in 1995 as a director responsible for the personal products operation, helping it grow from a nascent business to one of the key growth engines of the company. The personal product category, which includes brands such as Dove, Ponds, Pears and Vaseline, today give HUL 30 per cent of total revenues in part due to the impetus that Manwani gave it early on. He also has a good understanding of other core Unilever categories such as soaps & detergents, oral care and hair care. He was region head in different parts of the world. He was, for instance, senior vice-president Global Hair Care & Oral Care; president, Home & Personal Care first of Latin America and later of North America.
In 2005, he was appointed to the Unilever Executive as president for Asia, Africa, Middle East and the role later expanded to include Central and Eastern Europe. He also became the first non-executive chairman of Hindustan Unilever during a period that saw sustained growth with business more than doubling and reinforcing HUL's reputation as one of India's most admired companies.
In recognition of his efforts, Polman said, "Harish is an inspirational leader and leaves a remarkable legacy. He has been at my side in helping to drive the turnaround of Unilever, making this once again one of the most admired companies in the world. Over the last three years, especially as chief operating officer, Harish has been instrumental in the transformation of the company. Under his leadership we have seen a step-change in our go-to-market organisation and there has been a relentless focus on flawless execution globally."
The crucial decision to raise its stake in HUL last year in what was the biggest open offer ever by a company in India at Rs 29,200 crore was said to be a bold bet that Manwani and Polman were responsible for taking, analysts tracking the company said. And his continuation as HUL's non-executive chairman will mean that the Rs 28,019-crore company, which was formed in November 1956 following the merger of three subsidiaries - Hindustan Vanaspati Manufacturing Company, Lever Brothers Ltd and United Traders Ltd - will remain the jewel in Unilever's crown
HUL, which is the largest fast moving consumer goods company in India, gives Unilever 8 per cent of its revenues. India is also the second biggest emerging market for Unilever after Brazil and is considered key to the Anglo-Dutch major. In recent years, HUL has attempted to premiumise its portfolio as well as step into emerging categories in a bid to ramp up sales. It has also introduced a number of global brands and increased its distribution footprint in rural areas.
