Reasons for Hyderabad’s appeal:
- Established GCC Environment: Several GCC’s have been established in Hyderabad for companies such as McDonald’s, Heineken and Costco, thereby making it a desirable location for all multi-national corporations looking to expand.
- Strong Regulatory Support: Consistent, business-friendly policies from the State government have created an environment of predictable regulatory practices and streamlined approvals allowing for faster establishment of GCC’s, coupled with the ability to quickly grow the capacity of Global Capabilities over time.
- Significant Supply Chain and Manufacturing Capacity: It has not only proposed integrating Unilever’s supply chain capabilities into their Manufacturing Operations but also providing multiple benefits through each facility within the Supply Chain.
Hon’ble Minister Shri D. Sridhar Babu said Hyderabad is home to GCCs of several FMCG companies like McDonald’s, Heineken and Costco.
“Unilever is a prized partner of Telangana. Telangana is known for policy continuity and fast-paced approval and licensing process for businesses.”
– Shri D. Sridhar Babu
Sustainability: Aligning the Goals of Corporates and Governments
The discussions brought to light the synergy between Unilever’s commitments to the environment and those of the Telangana Government. The proposed collaboration sought to integrate Unilever’s objectives for “Water Positive” and reduction of plastics into the state’s priorities on renewable sources and responsible management of water resources as well as supporting and embracing a circular economy. These efforts are reflective of a growing trend identified by SSF Global, where GCCs are becoming important centres for sustainable growth and responsible business practices.
India’s Rapidly Growing GCC Landscape
Unilever’s inquiry into India arrives at a time when India is experiencing unprecedented growth in GCCs. To date, India has over 1,700 centres, representing approximately 55% of all GCCs worldwide. The number is expected to rise above 2,100 by 2028, and Unilever’s entry into the GCC ecosystem will further legitimize India’s transformation from a “back-office” to a centre of strategic development of AI adoption, Advanced Analytics, and Digital Transformation.
Way Forward
The talks involving Unilever and the Telangana delegation points to a mature market where the unification of technology and strategic services converge. In case it gets through, the centre in Hyderabad will probably be modern delivery capabilities focused, enabling Unilever to deal with the growingly strict global data-privacy and risk governance frameworks and at the same time increase its competitiveness globally.