Gender Equality as Smart EconomicsThe World Bank GroupInternational Finance Corporation

Case Studies

Hindustan Unilever Limited (HUL) - Nitin Paranjpe

Promoting Women’s Economic Empowerment:
The Learning Journey of Hindustan Unilever

Company: Hindustan Unilever

"What I am most proud of is the fact that this little idea which started with 17 women in one state is today over 45,000 women touching more than 135,000 villages across India."
- Nitin Paranjpe, CEO
Download Case Study 537 kb

 

Introduction

A sari-clad woman walks confidently across the village. "When my husband left me I had nothing. Today everyone knows me. I am someone," she says and smiles at the camera in the video about Shakti, a signature women's empowerment initiative of Hindustan Unilever. As India's largest fast-moving consumer goods company, Hindustan Unilever works to add vitality to life and meet everyday needs for nutrition, hygiene, and personal care. Its portfolio of brands includes well known products such as Dove and Sunsilk shampoos, Pond's skincare, Lipton tea, Lifebuoy soap and hand wash.

The company's work has been guided by the belief that the private sector can help create solutions to social challenges through innovative strategies that meet both business and social objectives. It is this belief that led the company to develop Shakti (meaning empowerment or strength), a direct-to-consumer sales distribution network that relies on over 45,000 female micro-entrepreneurs from 15 Indian states to tap into remote, rural markets in India. The initiative has proved a resounding success. Using an innovative distribution channel, Shakti has helped further rural development and has brought new business by opening previously unexplored markets.

Main Lessons

  • Developing innovative initiatives such as Shakti requires commitment and patience, where financial rewards may not be immediate but long-term business benefits could be large.
  • Multi-sector partnerships can strengthen the distribution model, especially when reaching previously untapped markets
  • .Aligning business goals with the emotional connect is important for ensuring staff commitment to a difficult but important cause.
 

Win-Win Situation for Business and for Women

  • Shakti, a direct-to-consumer sales distribution network that relies on 45,000 female micro-entrepreneurs has tapped into 3 million homes across 135,000 villages in remote, rural markets in India.
  • The program has brought competitive advantage and increased profits for the company while positively impacting local communities by increasing women's incomes.
  • By packaging products into very small amounts and selling them at prices that are affordable to the rural poor, the company is helping improve hygiene and well-being in rural India.