Hindustan Foods Limited is a two-star government-recognized export house based in Mumbai, having shown the way for other big players in the contract manufacturing segment for personal care, home care, food, and beverages. The versatile business models at HFL—Dedicated Manufacturing, Shared Manufacturing, and Private Label Manufacturing—have drawn massive brands residing under its roof, such as the Taj Mahal and Sunsilk. With strong industry relations and a drive towards operational excellence, HFL is setting benches for leading growth in the sector.
The value created through this holistic approach by which HFL has been managing its business is substantial, taking care of all things critical to business.
Business Continuity and Risk Management
The Business Continuity Plan forms an essential part of the strategy of HFL and is all-inclusive for identifying resources, preparedness, and capability to recover from a range of threats: equipment breaking, political chaos, and natural disasters. The proactive stance of HFL takes it into diversification of its clients for the need to avoid overdependence on any single client to ensure that its activities stand resilient in stressful situations. Implementation of the systems and their frameworks, which include disaster management plans that are regularly updated with relevant industry practices, however, is within the operations of the Risk Management Committee of the company.
HFL follows a structure of corporate governance that emanates firstly from its commitment to adherence to legal and ethical standards. The company has instituted strict codes of conduct and policies of whistleblowing to hold these standards at all levels of the organization. In the face of changing customer expectations and the increasing relevance of environmental care, HFL takes the path toward a low-carbon transition. This commitment to sustainability is part of the company’s long-term strategy and connects economic growth with environmental responsibility.
Operational Excellence
At HFL, continuous improvement is a critical corporate philosophy that thrives on reducing costs and striving for the highest standards of safety and efficiency, day in and day out. The incorporation and implementation of the 5S model and certifications such as ISO 9001:2008 and ISO 14001 throw light on HFL’s commitment to ensuring uprightness in operation. These undertakings raise the operational performance bar in work towards the bigger plan of achieving a turnover of Rs. 4000 crores by the end of FY 2024-25.
Employee Focus
HFL puts a strong emphasis on employee well-being and development. The health, well-being, and safety of their employees are well taken care of through several wellness benefits, leadership training, and work-life balance. It is also gender-responsive; women account for 20% of the board, which ultimately reflects HFL’s commitment to diversity and inclusion at every level of the organization.
Community Involvement and Corporate Social Responsibility
Community involvement at HFL, therefore, becomes the most significant thrust area of its CSR policy. The company puts a significant resource share in the development of skills for workers and is also involved in several community projects, which aim at building relationships with neighbors to see their smooth running. The initiatives do not only go forth in ameliorating the living standards of communities where HFL operates but also empower the organization as a whole to attain its stretched commitment to sustainability from the vantage point of well-built stakeholder relationships.
Environmental Responsibility
At HFL, the basic environmental strategy revolves around the decrease of its carbon footprints by different measures. This includes the utilization of renewable sources of energy. The company has been able to install zero liquid discharge mechanisms at all sites, resulting in the treatment and reutilization of wastewater within the premises. Secondly, the waste generated at HFL is disposed of according to the SOP prescribed by its principal customers and involves the safe and responsible disposal of both hazardous and non-hazardous waste.
Consumer Interaction and Product Safety
Since HFL is a contract manufacturer, the direct interaction with consumers is limited; many aspects of consumer safety and thus product recall issues are usually left up to its customers. At the same time, HFL does provide its customers with the utmost confidence in business continuity by being there for them via the most appropriate and transparent lines of communication in the event of any discontinuity or disruption of services. The company ensures that it remains on top of its operations at all times because if the operations are never disrupted, then business continuity is managed.
Governance and Oversight
The corporate governance structure is well defined within HFL, ensuring that the board is balanced with executive and non-executive directors. There are over one-third independent directors on the board, as is required by the norms in place, to bring practices on par with the governance standards. The Managing Director takes care of all the business responsibility policies, and sustainability issues are integrated through several committees reserved for this purpose, all of which signify an integrated approach of HFL toward business conduct.
Conclusion
Hindustan Foods is one of the leaders in the contract manufacturing business, dedicated to excellence in operations, corporate governance, environmental responsibility, and community touches. The association of good operating business practices at HFL with industry benchmarked practices, as well as the expectations and concerns of its stakeholders, would place HFL in good stead as a corporate citizen in realizing its long-term growth objectives, contributing positively to the betterment of society and the environment.
Source: BRSR
Credit: Hindustan Foods Limited