PT Unilever Indonesia

2023

Industry Champions of the Year

PT Unilever Indonesia

Industry Champions of the Year

2023

about PT Unilever Indonesia

“Purpose-Led and Future-Fit”

Unilever is a company built on purpose; purpose sits at the heart of everything they do – whether as an employee, a brand or a company. Now reaching its 90th year, their purpose has never changed − Unilever wants to make sustainable living commonplace.

PT Unilever Indonesia is a public listed company and is one of the country’s largest companies in terms of market capitalization on the Indonesian Stock Exchange. It is also one of the largest consumer goods producers of home, personal care, foods and refreshment products such as Lux, Dove, Pepsodent, Wall’s, Rinso, Royco, Sunsilk and so on. These products are available in more than one million stores across Indonesia while every home uses at least one of these products. PT Unilever has more than 40 brands, eight factories and more than 4,000 employees. 

Unilever all over the World

Unilever is a multi-local multinational company with over 400 brand names in over 190 countries, Indonesia included.

Globally, Unilever has a vision of delivering its winning performance by becoming the leader in sustainable business practices. This vision goes beyond driving strong performance; it is about continually doing good and creating a lasting impact by making sustainable living commonplace. 

The Unilever Compass

To achieve its vision of becoming a purpose-led and future-fit organisation, Unilever looks to the Unilever Compass as its north star.  The Unilever Compass is driven by three core beliefs that are embedded into every part of the business and towards every community they touch. These beliefs are: (1) Brands with Purpose Grow (2) Companies with Purpose Last and (3) People with Purpose Thrive. 

Driving Competitiveness and Growth

PT Unilever is currently seeing an improved market share which they attribute to their five strategic priorities to drive competitiveness and secure long-term growth. The five strategies are: 

1: Strengthening to unlock the full potential of core brands by focusing on running bold market development programmes and delivering impactful innovations supported by stronger and better communication with the right media investment. 

2: Expand the portfolio to premium and selected value segments. Drive premiumisation especially in personal care categories and ice cream.  In the value segment, the company’s launch of Lifebuoy Dishwash and Glow & Lovely Body Wash has seen both products do well. Glow and Lovely has become the Number One Face Moisturiser brand in Indonesia in terms of volume. On portfolio expansion, the company successfully increased the premium segment’s contribution to more than 27% of domestic sales in Q2 2023. 

3: Build an Execution Powerhouse to Strengthen Leadership in the Key Channels. The company started a channel transformation programme of key channels (GT and Modern Trade) and future channels (e-commerce) since H2 2021 to have bigger and healthier distribution trade across Indonesia. 

4: Driving E-everything, including data driven capabilities: This includes developing Forecasting Machine Learning to analyse current as well as predict future performances.  

5: Lead from the front on the Sustainability Agenda: 

  • Sekolah Sehat: PT Unilever has educated up to 15 million children since 2016 on essential lessons such as proper handwashing, toothbrushing, eating a balanced diet, and bathroom hygiene. 
  • Royco Nutrimenu programme: has served over 100 million plates of balanced meals to date since 2019. 
  • Sariwangi Programme: Collaboration with organisations like the Yayasan Jantung Indonesia and Alodokter to educate the public about healthy lifestyles and ways to maintain cholesterol levels via their SariWangi brand which contains flavonoids. 
  • B20 Women in Business Action Council: Unilever’s participation in the B20 Indonesia 2022 Presidency is a strong testament to their unwavering commitment towards advocating for Equity, Diversity, and Inclusion (ED&I). Women’s empowerment is a critical issue in today’s world, and the company’s efforts in this area were instrumental in the development of the final Policy and Action Recommendations document to its legacy project − One Global Women Empowerment (OGWE).  President Director of PT Unilever Indonesia Ira Noviarti is also Chair of the B20 Women in Business Action Council.
  • Program Saraswati from Kecap Bango: Women farmer empowerment programme that has reached 3,250 women since 2001. 

Rexona #GerakTakTerbatas: To do 165 million steps with society through the Gerak by Rexona application to encourage activity, including for people with disabilities.

PT Unilever’s Sustainability Performance 2022

  • 2.9 Tons Utilisation of Post Consumer Recycled Plastic in Unilever product packaging.
  • 62.3 Tons Plastic waste collection through waste bank networks in 50 cities/districts and 11 provinces and utilisation of postconsumer recycled plastic into Refuse Derived Fuel technology.
  • 88.12% CO2 emission reduction for scope 1 & 2 Vs. 2015.
  • 5.13% Decrease in energy consumption compared to 2021.
  • 100% Recyclable bottles for Lifebuoy and Rexona, recyclable PCR inclusion for mouthwash bottles, and recyclable sachet for SariWangi black tea.
  • 5.5 tons Reduction of virgin plastic content in Unilever product packaging.
  • 32,790 hours of total employee training given.
  • 50:50 A gender-balanced ratio at board levels to ensure gender equity in the company.
  • 80% of product portfolio from the Nutrition and Ice Cream divisions comply with WHO nutritional standards.
  • 100% Food products portfolio is in accordance with the WHO recommendation to consume less than 5 grams of salt.

Future Outlook

Indonesia is projected to become the world’s seventh-largest economy. With a population of nearly 300 million by 2030, with 78% residing in urban areas, consumer spending is expected to rise in tandem. Already, Indonesia’s consumer spending is anticipated to improve by approximately more than 5% by 2025. Long term growth will be supported by the:

  • Growing Muslim consumers. Indonesia has the largest number of Muslim consumers. Data shows that the number of women wearing Hijab has increased from 45% in 2015 to around 90% today. With the emerging desire to express the Muslim faith, innovations on product ingredients, story, and campaign portrayal should capture the strong relevance towards the Muslim identity. 
  • Growing middle-upper segment. Consumers in his segment will seek premiumisation, personalisation, and benefits beyond affordability. 
  • Growing Millennials and Gen-Z population. As a generation that is highly tech-savvy, the company foresees increasing activities in the digital space.
  • Growing concern in social and environmental issues. This is very much aligned to Unilever’s firm belief of making a positive impact on the environment and the surroundings while continually building a future-fit business that improves the health of the planet; improve people’s health, confidence and wellbeing while contributing to a fairer, more socially inclusive world. 

Eastern Communications’ talent development and career advancement programmes are put in place to determine talents who are ready for next level, leadership roles or critical roles. The organization conducts a Talent Assessment, which determines readiness; and identifies development programs that the incumbent will need to achieve and be successful in the target position.

Shanggari Balakrishnan, Chief Executive Officer, MORS Group

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