FMCG major Hindustan Unilever plans to directly source raw materials for its food brand Kissan from the farmers. The step is HUL’s effort to integrate the company’s brands with its social, environmental and economic agenda.
The company has identified five key platforms like health & nutrition, women empowerment, water conservation, cutting greenhouse gases and enhancing livelihood to drive its long term sustainable strategy. Harish Manwani, chairman, HUL said, “We have made specific choices which are based on the needs of the nation and the capabilities and skills we can bring to bear on these. We have identified five key platforms and have articulated goals, both short term and long term goals, stretching to 2015.”
HUL intends to pass on the entire economic benefit of backward integration for the Kissan brand to the farmers. Amongst the other initiatives it plans to enhance livelihood of 75,000 women in a sustainable manner and undertake water harvesting at around 10 manufacturing units. Addressing the annual general meeting Manwani informed that HUL aims to become water positive across all its operations by 2015. Since 2002, the company has reduced 50 per cent per tonne water usage in its manufacturing operations.
He mentioned that the company has embraced Unilever’s ambitious target to reduce 25% carbon dioxide from energy in manufacturing operations per tonne of production by 2012, against a baseline of 2004. The company has recently developed a new process of manufacturing soap based on ‘plough share mixer’ technology which eliminates the need for steam in soap making.
Manwani stated that competing for non-consumption itself will drive huge growth for HUL. He said, “Our value creating model is simple, competitive and profitable growth. In 2005, Unilever embarked on a new business model - 'One Unilever' that leverages our global scale with sharper strategic clarity and focus on operational excellence.”
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