Lever Brothers outshines all Asian units in '03
Chairman and Managing Director Sanjiv Mehta tells The Daily Star
M Shamsur Rahman and M Abdur Rahim
Lever Brothers Bangladesh positioned itself as the highest growth performer among Asian subsidiaries in 2003 with 17 percent growth, prompting top executives of the parent company to term it a 'jewel in the crown'. The company has been witnessing double-digit growth for the past six years through adoption of information technology and local outsourcing, helping it achieve such successes. In an exclusive interview with The Daily Star, Chairman and Managing Director Sanjiv Mehta said the company maintained consistency in pricing over the past six years despite 35 percent devaluation of taka. Mehta joined Lever Brothers Bangladesh in 1998 when the company was witnessing a turbulent year due to the onslaught of the so-called Halal soap. "Since the 1998 turbulence, we in the Lever Brothers Bangladesh did not look back and continued growing by increasing our market share." The key to Lever Brothers success is quality products, good management, corporate disciplines and foolproof distribution system. All things are done in Lever Brothers in a systematic manner. The structures and corporate guidelines are set. What staff need to do is to execute in line with these formats. "I am the chief executive of the company but I never sign a check," Mehta said. He said Lever Brothers' commitments have helped its 13 products, out of 14, grab top positions in Bangladesh market. Mehta said the journey in the past six years was not an easy one as he was sent to Bangladesh with specific agenda. "My six years with the company in Bangladesh is an exciting odyssey," the 12-year Unilever veteran said. "I came here with a clear objective to rescue the company at a time when the company was in a decline. But we restored Lux market share against tough Halal soap campaign with strategic plan," the 44-year old Indian said. "Now we are recording sales to the tune of Tk 800 crore a year. Six years back, local inputs of raw materials was 19 percent, which is 40 percent at the moment. Some 99 percent of Lever products are produced in Bangladesh plants now," he said. "The remarkable thing is that all these achievement has been made by Bangladeshi people. Of the 10,000 people involved in the company only two are expatriates. This proves that talent and managerial skills of Bangladeshi people are on par with the world standard. If good environment and management are ensured, Bangladeshi people can give the best in the world," Mehta said. "It is all about focus, specific targets and measurements. If you measure your performance, you can improve it. I get sales statement of all products and other company figures of a month on the first day of the following month. This gives us a chance to measure performance and better it," he said. Many people have the ingrained impression that Bangladesh is a corrupt country. So, if somebody is to do business here, he or she must entertain corrupt practices. But the story of Lever Brothers belies this, the Mumbay-born executive pointed out. "Our company here does not get phone calls for recruitment and donations. People know that the company will not entertain these under any circumstances as the company has strict and clear-cut rules against such things," he said. "It only proves that if you are firm, you can conduct businesses honestly in Bangladesh and see growth without entertaining corrupt practices," he observed. Asked about secrets of continuous growth, he said, "We create demand for a product among consumers. We conduct market research to know what types of product consumers need. We translate people's need into a product. We hold field demonstration on use of a new product in rural areas that helps create a market there. We spend Tk 25 crore or four percent of sales for consumer research a year." "Few years back there was little demand for detergent powder, deodorant and lotion but we have been able to create a demand for the products. We are the first in Bangladesh to introduce sachets targeting the lower segment of the market. We knew that if we are to reach all sections of people we have to offer products in small packs," a beaming Mehta said. "We also invest millions of taka to strengthen infrastructure and equip our plants with latest technologies. Investment in infrastructure is something that pays you back in the long run. It gives leverage to workers, improves working environment and saves electricity," a candid Mehta shared the secrets. The employee incentive is lucrative in the company. Inspired by profit-sharing, the employees give hundred percent to the company. As the company shares a portion of profit with staff, the employees are more enthusiastic about growth and performance of the company, he said. Unilever, the parent company of Lever Brothers Bangladesh, was established in 1930 when the British soapmaker Lever Brothers merged with the Dutch margarine producer, Margarine Unie. Employing 247,000 people in 150 countries, the consumer product manufacturing company's annual turnover is now over $5 billion. In Bangladesh, Lever Brothers started business in 1964 as Lever Brothers Pakistan. In Lever Brothers Bangladesh, Unilever holds 61 percent stakes and Bangladesh government 39 percent.
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