HUL focus on e-commerce
FMCG major HUL is focusing on e-commerce and modern trade channels, which it considers as “channels of the future” as consumer preference keep changing in the wake of the coronavirus pandemic.
The new technologies are changing the landscape of sales, and HUL is evolving to adapt to the trends by embedding technology across its end-to-end value chain to build a business, which is future-fit.
“We continue our journey of growth in modern trade and e-commerce, the channels of the future. We are using e-commerce channels to drive the new benefit segments and new formats. We are focusing on building online shelves on the e-commerce platforms with winning point of sale communication,” HUL chairman and managing director Sanjiv Mehta said in his address to shareholders in the company’s annual report for 2019-20.
Consumer preferences are “constantly changing”, and HUL is leveraging the “fastest growing channel of e-commerce by making all our brands available across platforms” and playing a differentiated portfolio strategy curated for this channel.
While talking about growth of online sales, Mehta said, “New technologies are changing the landscape” of the consumer goods market, bringing opportunities for brands and consumers alike.
“Consumers are shopping through more diverse channels and smaller local brands as well as digital-first brands are increasingly entering the market,” he said, adding HUL will continue to be “agile and responsive to leverage market opportunities and navigate” through the challenges.
“By staying close to consumers and their needs, we ensure that our business continues to grow, while having a positive impact on people and the planet. Our strategy is constantly evolving to adapt to the trends and forces shaping our markets and impacting our multi stakeholders,” he said.
Mehta pay at Rs 19.42 crore
Sanjiv Mehta’s gross salary increased 2.86 per cent to Rs 19.42 crore for 2019-20, according to the company’s annual report for 2019-20. This is in contrast to 2018-19, when his salary was lowered to Rs 18.88 crore fromo Rs 19.37 crore in 2017-18.
In 2019-20, Mehta drew a salary of Rs 12.46 crore, along with a bonus (profits in lieu of salary) of Rs 3.31 crore, stock option of Rs 3.20 crore and Rs 0.45 crore as contribution to PF, superannuation and consultancy fees.
The company’s managing director, wholetime directors and key managerial personnel together took a gross salary of Rs 37.49 crore, up 2.99 per cent from Rs 36.40 crore in 2018-19. This includes the gross salary of CMD Mehta, CFO Srinivas Phatak, Executive Director - Supply Chain Pradeep Banerjee, Executive Director - Legal and Corporate Affairs Dev Bajpai and Wilhelmus Uijen, Executive Director - Supply Chain. Banerjee had ceased to be a whole-time director of HUL from December 31, 2019 and Uijen was appointed as a whole-time director from January 1, 2020. . His salary was 151.22 times higher than the average ratio of remuneration of HUL employees. In FY2018-19, Mehta got a salary of Rs 8.80 crore, along with Rs 1.13 crore perks, a bonus (profits in lieu of salary) of Rs 2.73 crore, stock option of Rs 5.79 crore and Rs 0.43 crore as contribution to PF, superannuation and consultancy fees. HUL has 7,082 permanent employees on the rolls of the company as on 31st March, 2020 and the percentage increase in the median remuneration of employees for the financial year was 4.26 per cent.
The company is also curating innovations to specifically cater to the retail and e-commerce channel. A dedicated expert team is working closely with all key e-commerce partners to create competitive advantage for the business and scaling up at a rapid pace in line with the overall channel growth.
Moreover, HUL is embedding technology across its end-to-end value chain to build a business that is future-fit. “We are picking up consumer signals real-time through the People Data Centre, which analyses consumer sentiments and conversations about our brands ,” he said.