Hindustan Unilever Ltd. (HUL), India’s largest consumer goods company, is updating the skills of its Board to keep up with changing times and consumer demands.
The company’s Board will now need to focus on areas like cybersecurity, ESG (environmental, social, and governance), and data governance. These changes are aimed at helping the company grow and retain talent.
HUL’s recent annual report for 2023-2024 highlights the need for these new skills due to significant changes in the business environment and regulatory framework. The report states, “With increasing focus on cybersecurity, AI, ESG, and risk management, the skills required of Directors for effective Board functioning have evolved.”
On February 26, 2024, HUL’s Board of Directors, following the recommendation of the Nomination and Remuneration Committee, approved and adopted a revised Board Skill Matrix.
This makes HUL one of the first large companies to officially require its Board to have additional specific skills. Previously, certain skills were expected, but this is the first time HUL has measured the extent of these skills among its directors.
Skillset Statistics
The report shows that while 92% of HUL’s Board members have leadership experience, only 33% are knowledgeable about cybersecurity, data governance, and IT. All Board members understand the importance of “business with a purpose,” and 75% have experience managing large and complex business operations.
HUL’s Board includes Nitin Paranjpe, Rohit Jawa, Leo Puri, Kalpana Morparia, Tarun Bajaj, and Neelam Dhawan, among others.
HUL, with over 50 brands across 16 FMCG categories, reported a turnover of ₹59,579 crore in FY24. The company’s governance structure includes the Board of Directors, Board Committees, CEO & MD, and the management committee.
In April, HUL appointed B.P. Biddappa to its management committee as executive director, human resources, and chief people, transformation, and sustainability officer for South Asia. Biddappa’s role involves leading the people agenda for South Asia and driving transformation in business, organization, and sustainability.
Why the Change?
India is becoming a crucial market for Unilever globally, and talent from India is increasingly holding top positions in the company. HUL is known as a “CEO factory” for producing executives who now lead companies worldwide.
Search firms are also looking for independent directors who understand changing business needs. More than 1,000 independent directors are set to retire by June 2024, prompting companies across sectors to seek managing directors and CEOs to fill these roles.
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