HUL Chairman Discusses Protectionism as a Key Challenge for Businesses
Geopolitical uncertainties and a surge in protectionism are creating significant challenges for businesses worldwide, according to Nitin Paranjpe, the non-executive chairman of Hindustan Unilever (HUL). In an exclusive interview following the company’s annual general meeting in Mumbai, Paranjpe emphasized the need for companies to adapt swiftly to these disruptions. He highlighted that while India may be better positioned than other nations due to strong domestic consumption, businesses must still navigate the complexities of a rapidly changing global landscape.
Challenges of Geopolitical Uncertainty
Paranjpe pointed out that the traditional global order has been significantly disrupted, leading to increased geopolitical uncertainty. This shift has resulted in a move away from decades of globalization towards a more protectionist approach. He noted that this transition is not straightforward and presents unique challenges for businesses. Companies must now contend with both first-order effects, such as immediate market changes, and second-order effects, which may arise from longer-term shifts in consumer behavior and market dynamics. Paranjpe stressed that the ability to predict future trends has diminished, making it essential for businesses to build agility into their operations to respond effectively to these changes.
India’s Economic Position
Despite the global challenges, Paranjpe believes that India is in a favorable position compared to other countries, particularly China. He noted that India’s strong domestic consumption reduces reliance on export-led growth, potentially allowing Indian businesses to capitalize on the ongoing shifts in the global order. Paranjpe suggested that this could present unique opportunities for Indian companies to innovate and adapt. However, he cautioned that businesses must be prepared for shorter payback periods and a need to rethink traditional business models in light of these changes.
Emphasizing Agility and Technology
In his AGM speech, Paranjpe outlined HUL’s commitment to speed and agility as essential components of its strategy in a rapidly evolving market. He highlighted the importance of embedding technology across the company’s value chain to enhance resilience and responsiveness. As consumer preferences shift in the digital age, HUL aims to develop a diverse portfolio that meets the needs of a broad audience. Paranjpe emphasized the necessity for companies to become adept at sensing changes in the market and leveraging technology to respond effectively.
Commitment to Sustainable Growth
Paranjpe also addressed the importance of balancing economic growth with environmental sustainability and social progress. He stated that India Inc. has a crucial role in fostering a developed nation while prioritizing these values. HUL’s strategy focuses on building tech-powered capabilities that not only enhance operational efficiency but also align with the broader goal of sustainable development. By leveraging technology in unprecedented ways, HUL aims to position itself as a leader in adapting to the changing landscape of consumer needs and market dynamics.
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