HLL May Add Unilever Spore, Saudi Ops To Its BPO Basket

Mumbai, Nov 2: | Updated: Nov 3 2003, 05:30am hrs
Hindustan Lever Ltd (HLL) is likely to undertake business process outsourcing (BPO) activity for two more Unilever operations Singapore and Saudi Arabia.

HLL has already garnered business on BPO activity for Unilevers operations in Malaysia and Australia. Back office operations of these Unilever operations will entirely be handled by HLL from India.

The move will yield major cost benefits for HLL. The project is being undertaken in a major way, and is being treated as a strategic business unit (SBU) within the company.

HLL officials said that the initiative has taken off well and the company is in the process of getting more business from its parent company on BPO.

HLL has floated a separate subsidiary called Indigo to move ahead with its BPO initiative. This wholly-owned subsidiary has two divisions one for the domestic market and the second for the international market. Indigo has a relatively small operation with a small employee strength.

To achieve tangible business value, the company has leveraged IT to simplify and standardise operational procedures and business processes. Besides, the company has made rapid progress in deploying datawarehouse techniques for information management and decision making.

HLL, which is on a continuous drive to focus on operational efficiencies and cost reduction, has leveraged on information technology to strengthen its supply chain to deliver improved customer service and also to lower costs. Unilever holds a 51.55 per cent stake in HLL. As part of its recent IT initiatives, more than 1,000 HLL stockists in India were connected to Unilevers systems. This is to provide them with better stock control and easier replenishment, leading to higher sales growth and inventory savings for customers.