HUL separates food, beverages segments

Appoints new ED for latter, in 2nd of such segment splitting after home & personal care in Aug 2014

Hindustan Unilever (HUL), the country's largest consumer goods company, has separated its food & beverages business into two divisions, appointing a new executive director (ED) for beverages.

Geetu Verma, currently ED (foods & refreshments) will be ED (foods). In charge of beverages will be Sudhir Sitapati, currently regional category vice-president, refreshments (South Asia & Africa). He takes over on July 1.

This is the second such separation of segments in nearly two years at HUL. The earlier one was reorganising of home & personal care into separate divisions, following ED Hemant Bakshi's movement to Unilever, Indonesia. Bakshi was in charge of the two segments. Replacing him was Samir Singh as ED, personal care, and Priya Nair as ED, home care, with additional charge of the water business.

A MOVE TO BE STRONGER

• Geetu Verma, currently ED (foods & refreshments) will be ED (foods)
   
• Sudhir Sitapati, currently regional category vice-president, refreshments will be in charge of beverages
   
• Earlier, home & personal care was reorganised into separate divisions
   
• HUL's packaged foods business grew 12 per cent to Rs 2,117 crore in FY16
   
• Beverages grew 7 per cent to Rs 3,888 crore
   
• HUL is looking to grow foods and beverages businesses aggressively
   
• Despite being longer in foods, the company lags rival ITC in the category

In February this year, Singh was elevated as global executive vice-president, skin cleansing, Unilever. Sandeep Kohli then took over as ED, personal care.

All EDs are part of the management committee, a core unit, where executives report directly to the managing director, Sanjiv Mehta.

HUL stated the current realignment was in line with the category structure that prevailed globally at Unilever. Both food and beverages had acquired significant scale, meriting separation into two divisions.

For the financial year ended March 2016, HUL's packaged foods business grew 12 per cent to Rs 2,117 crore. Beverages grew seven per cent to Rs 3,888 crore. HUL does not report home care separately in its financial results. Personal products, reported in its earnings, excludes soaps. Soaps & detergents grew 1.2 per cent to Rs 15,053 crore and personal products by 7.2 per cent to Rs 9,656 crore.

The separation of foods and beverages also comes at a time when HUL is looking to grow these businesses aggressively. Despite being longer in foods, it lags rival ITC in the category.