The board of Orkla has agreed to implement a new corporate structure that will see the establishment of 12 independent portfolio companies.

The Norwegian conglomerate says that the individual units will have greater autonomy and responsibility, as well as their own board of directors. The announcement follows the appointment of Nils K. Selte as Orkla’s new group president and CEO earlier this year.

“Since Nils K. Selte took up the post of president and CEO on 11 April this year, he has worked systematically on setting up the new structure, and I am glad that we can now establish a new business and operating model,” said Orkla board chairman, Stein Erik Hagen.

The revamp will come into effect on 1 March next year, and the 12 independent companies will include: Jotun, Orkla Foods Europe, Orkla Food Ingredients, Orkla Confectionery and Snacks, Orkla Health, Orkla Home and Personal Care, Orkla India, Pizza Out of Home, Orkla House Care, Health and Sports Nutrition Group, Pierre Robert Group and Lilleborg.

Selte said: “We will adopt a long-term, industrial approach to the portfolio companies as active owners and will work through the company boards. We will continue to build on the deep consumer insight and experience that we have acquired in developing leading brands. At the same time, we will pursue an active portfolio management policy, targeting rapidly growing consumer segments and markets.”

“In the time to come, we will adopt a more dynamic approach to our portfolio, which will entail assessing acquisitions, joint ventures, stock market listings and divestments of companies,” he added.

Selte will be joined in Orkla group’s executive board by five executive vice presidents who will together form a single investment team. The new group executive board will be operational from 13 December this year.

The Orkla group will maintain its ownership of the Hydro Power energy business and the real estate investments in Orkla Real Estate.

The restructuring is not the first business overhaul by the company in recent times. Last year, in another reorganisation plan, Orkla announced the creation of a new division called Orkla Foods, as well as a number of major appointments.