In a bid to expand business and increase accountability, Nestle India has reorganised its management structure. The company has created separate business units (SBU) according to product categories with a general manager in charge of each unit.
The different units are milk products and nutritional products; chocolates and confectionery; prepared dishes and cooking aids; and beverages.
To increase focus on the individual brands, each unit will have a brand manager for each of the brands which fall under that category. For instance, under beverages there would be specific brand managers for Nescafe and Milo, the malted beverage brand.
This is also being seen as a move within the company to increase accountability for each individual brand and expand its business by increasing focus on all the brands.
When contacted, a Nestle spokesperson said, “Nestle India is focused on long term, sustainable and profitable growth. In order to better operate and compete in the market, the company realigned some of its internal structures to make it a multi-focal company with category specific business units.”
While at present there is a common sales force that services all the brands, there is a possibility that this too would be divided along product or category lines.
The general managers will work towards the development of the product categories or SBU.
Over the last few months, equity analysts have raised concerns about the slow down in the core milk products business of the company, which comprises almost 45 per cent of the company’s business, partly a result of increased milk prices.
In beverages too, volumes have fallen by 12 per cent for the January-September period, largely due to discontinuation of exports to Russia.
However, in the domestic market too, Nestle has been losing market share.
Some of the other key Nestle brands include Maggi, Everyday, Polo and Kit Kat.