With a $2.5 million investment, Kimberly-Clark has seen its Bangalore Global Digital Technology Centre (GDTC) grow eightfold over the past five years, expanding from 50 employees to 430. Zack Hicks, the company’s Chief Digital Technology Officer, highlighted this growth in an interaction with Fortune India on the sidelines of the company’s annual hackathon in December.

“We set up our Global Technology Centre in Bangalore about six years ago with an initial investment of $2.5 million. Since then, our Tech Hub has grown significantly, expanding its workforce and capabilities by eight times,” Hicks said.

Beyond talent expansion, Hicks noted that Kimberly-Clark has made substantial investments in technology, including large-scale SAP implementations and global AI-driven innovations, many of which are developed or supported at the Bengaluru centre. Currently, nearly 40% of the company’s technology team operates from the Bangalore hub.

The US-based multinational, known for brands such as Huggies and Kotex, has been present in India for over two decades, competing in the adult, feminine, and baby care segments. India’s diaper market, valued at approximately $350 million, is growing steadily, though it remains smaller than China’s $3 billion market. Kimberly-Clark operates from its Mumbai and Bengaluru offices, with manufacturing facilities in Pune. The company took full control of its India operations in 2017 after ending its joint venture with Hindustan Unilever.

Innovation and Market Expansion

Discussing the company’s global strategy, Hicks explained that Kimberly-Clark operates in about 170 countries and manages 50 of them from a corporate perspective. “We compete in eight key segments, five of which—including diapers—are categories we pioneered. Innovation is at the core of what we do,” he said.

As part of its transformation strategy, the company has restructured its operations to focus on product categories rather than regional divisions. “We now have a North American segment, an International Personal Care business, and an International Family Care and Professional business,” Hicks noted.

He emphasised the importance of market-specific innovations tailored to different geographies. “For hotter climates, for example, we are working on making diapers lighter and more breathable while ensuring better absorption and skin health,” he said, hinting at upcoming product advancements. He also alluded to potential future innovations incorporating biometric technology, though he did not confirm specific product developments.

AI-Driven Cost Optimisation

Hicks highlighted the growing role of AI in optimising Kimberly-Clark’s supply chain and manufacturing processes. The company has developed an AI-powered logistics tool, Maestro, designed to enhance transportation efficiency. “In the short time we’ve been using this AI, we have already reduced operating costs by $20 million,” he said.

AI has also improved product quality and manufacturing efficiency. “In our tissue production line, AI helps ensure optimal strength and quality. Since launching this project in September, we’ve saved over $200,000 from just one tissue line. Some of this AI innovation was developed right here at our Bengaluru GDTC,” Hicks added.

Strategic Partnerships and Future Growth

To drive further innovation, Kimberly-Clark is collaborating with local technology partners such as TCL and Tech Mahindra while remaining open to new partnerships. “We are actively working with established players but are also looking to engage with emerging companies as we continue expanding our investments,” Hicks said.

On the company’s position in the Indian market, Hicks reaffirmed Kimberly-Clark’s strong presence. “We are either the number one or number two player in every category we compete in, driven by unique technology and product innovation,” he said.

With India’s high birth rate and growing consumer demand, Hicks sees significant potential for expansion. “India remains a key growth market for us, and we are committed to strengthening our presence and continuing to innovate for local consumers,” he concluded.

Bangalore GDTC

Kimberly-Clark’s $2.5 million bet on Bengaluru pays off: AI, innovation, and an 8x tech boom