The Sunday Times FT -

Unilever Sri Lanka, on double digit growth this year will continue to add vitality to life, while adding value for money to Sri Lankan consumers ‘for sure’ provided economic policies are consistent and cost efficiencies can be managed in the country.

When asked whether Unilever has any plans to pull out of manufacturing in Sri Lanka , the company’s new chairman Amal Cabraal in an interview with The Sunday Times FT said emphatically that “Unilever is not looking to shift its manufacturing operations from Sri Lanka. In fact, 95 percent of the products we sell in the country are manufactured in Sri Lanka. We have to put the consumers first and ensure that they get good value for their money. As at today we can manufacture most of our products here in Sri Lanka, more cost efficiently than importing them, but if the cost advantage equation changes, we may be forced to look outside to ensure that the consumers get the best prices”.

He said however the recent increases in Cess on raw and packaging material is having an adverse impact on cost of local manufacturing. “We hope the new budget will look to revise these added tax burdens to further support local manufacture. We also seek greater consistency in economic polices, so that we can continue to deliver value to the consumer.”

Speaking about the company’s corporate social responsibilities (CSR), Cabraal insisted that CSR is an integral part of the company’s mission, which is to add vitality to life and said that Unilever carried out a host of CSR activities. “CSR is in our DNA and we do it in a very unique way. It is very easy to write a cheque for a worthy cause and let someone else do the work, instead we involve ourselves in the projects and do it mostly through our brands,” he added.

“For example, to name just a few of the projects we do, Signal has for 25 consecutive years carried out oral hygiene programmes in schools. When drought gripped the north central part of our country, Sunlight stepped in to provide water by digging wells. We are currently funding a project through the International Water Management Institute (IWMI) to develop an early warning system for droughts”.

On funds that flowed (or didn’t) into the country, post tsunami, he said that it is important to recognise the good work done by many, while also noting the inefficiency of the bureaucracy and the promises that were never fulfilled.

“A lot of money has come in, but I do not think the bureaucracy has moved as efficiently. I cannot comment on how much money came in, but for sure I know that all of what was promised did not reach here. As usual, the efficient use of the money is always questionable. As always, things could be better, but we must commend the great work done by many to help the tsunami impacted people,” he explained.

Cabraal said the company will continue to introduce new brands in keeping with the changing needs of the consumers and the trade.

“We have a lot of new initiatives in the pipe-line. The needs of people are changing and so is the trade environment. The trade structure is changing fast from being predominantly grocery stores to supermarkets or what we call the modern trade. With modern trade comes new opportunities and of course challenges. At the same time, people are looking for more choices. We have recognised this and are responding. For example, take the Signal brand, which for years had just a single variant but today has added three new variants to its portfolio - Signal Whitening, Signal Herbal and Signal Triple Action,” he explained.

Explaining Human Resources (HR) initiatives, he said the company has moved from having a more transactional bias to a more transformational focus. “Besides all the usual transactional stuff including recruiting, remuneration, training etc., HR’s role is to ensure that all our people’s behaviours, attitudes, competencies and skills are in synch with the company’s values and mission.

“This does not mean that transactional work does not happen, it must be done, but the transformational initiatives take pride of place,” he added.

In addition he said Unilever Sri Lanka managed to double its business during the last four years with virtually the same brands and the same people. “A key enabling factor in this achievement was the transformation of our people’s behaviours. It was not only HR that championed this cause, but every other function too, be it Finance, Marketing or Manufacturing, they took it on board to take the transformation process forward,” he added, noting that this transformation is still happening today.

“One of the first initiatives under this programme was the Enterprise Culture Programme (ECP) which brought out the inherent yet subdued entrepreneurial spirit of the people. We started the ECP with the Board, because we believed that transformation must begin at the top – it was critical that top management lead by example,” he said.

On the question about Unilever Sri Lanka’s contribution to the country, Cabraal had this to say: “We have been in this country for nearly 70 years and during these years, we have through our wide portfolio of leading brands contributed immensely to the health, hygiene, nutrition and personal care needs of many generations of Sri Lankans. Besides, the company has also contributed vast sums of money in the form of direct and indirect taxes to the exchequer. For example, just last year alone we contributed approximately Rs.3 billion to government revenue by way of duties and taxes”.

Referring to marketers and marketing, he said that marketers have to be fortunetellers of the company. “They have to gaze into the crystal ball and view consumers and shoppers and read the future. They need to identify new trends, new consumer needs and expectations and respond in time well ahead of competition to ensure the continued growth and well being of this business,” he added.