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Paranjpe, 50, will now be president (home care) and part of the Unilever Leadership Executive (ULE), the Anglo-Dutch major's 12-member executive team comprising top managers.
He is the third HUL executive in the last decade to be elevated to the ULE. In 2005, Harish Manwani and Manvinder Singh Banga became members of the global executive team, following their elevation to the posts of president (Asia Africa) and president (foods), respectively. Later, Banga became president (global foods, home and personal care), before resigning in 2010. Manwani, also chairman of HUL, became chief operating officer in 2011.
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In October, Sanjiv Mehta, chairman (North Africa & West Asia) would replace Paranjpe as managing director and CEO. Mehta would also manage the South Asian cluster of markets, including Pakistan, Sri Lanka, Bangladesh and Nepal.
In a statement, Manwani said, "The changes reflect our strong commitment towards leadership development and our tradition of leveraging experiences and synergies of talent across markets. Nitin made significant contribution to the business in India and Sanjiv will further build on this."
Appointed head of the India business in 2008, Paranjpe successfully helped HUL shift focus from its much-hyped power brands strategy to a wider portfolio of products, including national and regional "gems". The move was aimed at reclaiming the space it had vacated, especially in rural areas, with products that had a regional appeal. The emphasis on regional products such as Hamam, Rexona, Breeze, Sunlight and Brooke Bond Three Roses increased, even as Paranjpe looked at uptrading consumers in urban areas with more chic products from the company's global portfolio.
In the last five years, HUL has introduced a number of international products - from the Comfort fabric conditioner to Sure anti-perspirant, Cif stain remover and the Tresemme range of styling products - prompting parent Unilever to raise royalty from 1.4 per cent of sales last year to 3.15 per cent by March 2018.
Paranjpe also tripled the company's distribution reach, especially in rural areas, as consumer-driven companies made a beeline for the countryside. His regional-national focus helped HUL add about Rs 5,200 crore to its turnover in the last five years, with net profit increasing from Rs 2,496 crore to Rs 3797 crore in the same period.
Mehta, 53, has been with the company for about 20 years. In his new role, he would have to identify new areas of growth, at a time when traditional bread-and-butter categories such as soaps and detergents saturate, say company observers.
In its 2012-13 annual report, HUL said it would focus on segments such as beauty, foods and modern trade, as it sought higher growth. The company has already taken steps in this direction, ramping up its Lakme salons in cities such as Delhi and Bangalore and introducing more salon-style products such Tresemme and TIGI in select outlets across the country. While foods and modern trade are not major drivers at the moment, the company has said it feels these would be growth areas in the future.
