Lakme Salon sees top level resignations

In early 2009, Hindustan Unilever (HUL) set up a wholly

owned business model of Lakme Beauty Salons. And it dedicated the task of handling its business to its subsidiary Lakme Lever (LLPL). HUL decided not to be directly engaged in the services business of Lakme Salons, but after three years, when Lakme Salons are showing signs of profitability and expansion viability, HUL management is trying to take ownership of the venture.

This move disturbed the LLPL top brass resulting in the exit of its entire top management over the past couple of months. Other than CEO Anil Chopra, other exits include head of marketing Kiran Gill, HR head Sandeep Sengupta and head of operations Rakshit Harghave, Poornima Shah, national business manager for company-owned salons has also put in her papers a few months ago.

The Lakme services operation now directly reports into Gopal Vittal, HUL’s executive director for the home and personal care business (HPC). Former McKinsey consultant Karthik Seth is now heading the salon business.

HUL spokesperson has denied the allegations saying that since LLPL is a 100% subsidiary of HUL, it has always had an oversight of LLPL’s operations, which will continue. And now HUL is looking for a replacement to take over CEO’s place vacated by Chopra. Chopra has been associated with Lakme since it was a Tata company. In the mid-90s it entered into a JV with HUL. Three years later the Tatas sold it to the consumer products giant. Chopra is credited with establishing Lakmé as an iconic beauty brand and conceptualising and running the Lakme India Fashion Week. Chopra also added some 65 new salons since 2009, and overall growth since then is 40-45 per cent annually.