Protectionism among biz challenges: HUL chairman

Mumbai: Geopolitical uncertainties and rising protectionism are posing challenges for businesses globally, and companies will have to respond with speed and agility to protect their growth as they navigate these disruptions, said Nitin Paranjpe, non-executive chairman at Hindustan Unilever (HUL). "The impact that technology will have on us, the impact that climate change will have on us is understood...we have to gear up to deal with it, but the direction is known..."

"The new thing which is happening is the uncertainty...the geopolitical uncertainty, the world order as we have understood and known for the last several decades has been upended. That causes challenges for businesses. Decades-long globalisation suddenly giving way to protectionism and even that is not so linear....that's a challenge," Paranjpe told TOI in an exclusive interview on the sidelines of the company's annual general meeting (AGM) at its headquarters here on Monday.



A strong domestic consumption and lesser reliance on export-led growth places India on a better footing compared to other countries like China, and India might even have an "opportunity through all the resetting of the global order," Paranjpe said. This means businesses may escape the first-order effects of global uncertainties, but companies will have to deal with the second-order effects, Paranjpe explained, adding that traditional "payback periods" for firms will start getting challenged.

"Trying to predict the future is a fool's errand, it's simply impossible. Therefore, finding a way by which you can structurally build in agility and the capacity to respond becomes far, far more important. Predictability has reduced, and so we need greater agility. As you start thinking of outcomes (from a business planning perspective), you have to start thinking of paybacks which will be shorter. That's what the world has to now deal with," Paranjpe said.

To create a developed India, economic growth alongside environmental sustainability and social progress need to be prioritised, and India Inc has a major role to play in it, Paranjpe said in his AGM speech. HUL's mantra in this rapidly changing world is speed and agility. "We are embedding technology across our value chain to enhance agility and resilience," Paranjpe said.

As companies cater to changing consumer sentiments and preferences in a growing digital world that's reshaping trends, HUL's task is cut out: to craft a portfolio that can address people across the spectrum. The company's strategy will be to build tech-powered capabilities to service consumers. "We have to become world-class in sensing change and build world-class capabilities to respond to that change by leveraging technology in a way we have never done before," Paranjpe said.