HUL to set up first aerosol deodorant plant with Rs 360 crore investment

Tags: News
Unilever, parent company of FMCG major Hindustan Unilever (HUL), on Sunday said it will invest over Rs 360 crore to set up its first Aerosol deodorant manufacturing facility in Khamgaon, Maharashtra in an effort to expand further into emerging markets. This announcement comes close on the heels of new factories announced for Thailand and South Africa.

Investment in this new factory in India complements the ¤70 million (around Rs 507 crore) committed to building new homecare liquids and distribution facilities in Thailand announced last week and ¤75 million (around Rs 543 crore) to building a new home care factory and expanding existing manufacturing plants in South Africa announced at the end of January.

Pier Luigi Sigismondi, chief supply chain officer of Unilever, said in a statement that the investment in India is part of the company’s broader expansion plans to achieve its ambition of doubling business, while halving environmental impact. “The Khamgaon plant is one of the thirty new factories being built by 2015 and we will utilise the latest technology to deliver the increased quality products our consumers demand whilst meeting the Unilever Sustainable Living Plan commitments,” added Sigismondi.

The company said investment in Khamgaon would be phased over three years and production capacity will gradually be scaled up to generate direct employment to over 150 people and indirect employment to about 200 people. The plant would service demand from India and across South East Asia including Malaysia, Thailand, Singapore and Vietnam, it added.

Shirish Pardeshi, executive director and co-head research of Anand Rathi Securities said this could lead to further penetration and growth in deodorant category.

The plant will utilise the latest technologies to maximise energy efficiency and reduce waste water to zero, the company said. “This is in line with Unilever’s goal of reducing water use in manufacturing. Hindustan Unilever (HUL) has reduced water usage in its manufacturing operations by 10.1 per cent compared with 2010 and by 21.5 per cent compared to our 2008 baseline. More than 75 per cent of HUL’s manufacturing sites are zero-discharge sites,” HUL said in a press statement.

Nitin Paranjpe, CEO of HUL, said, “It will enable us to better serve consumers with innovation and green technology, as well as improve service levels to our retail customers.”

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