HUL To Invest Rs 1,000 Crore In New Manufacturing Unit

HUL To Invest Rs 1,000 Crore In New Manufacturing Unit
New Delhi: FMCG major Hindustan Unilever Ltd (HUL) on Monday said it plans to invest about Rs 1,000 crore to set up a new facility at Doom Dooma in Assam, while announcing a change in its management committee after the resignation of ED and VP-sales and customer development Punit Misra.

The new manufacturing unit will be in the vicinity of the existing factory premises in Doom Dooma. It is expected to be commissioned in early 2017 and will augment the production capacity of personal care products for HUL, the company said in a statement.

"This investment is subject to receipt of requisite approvals and clearances," it added.

At present, Hindustan Unilever Ltd has a manufacturing facility in Doom Dooma Industrial Estate of Upper Assam set up in 2001 and houses three units that produce personal care products (shampoo, skin creams and toothpaste).

"With over 15 years of operating experience in the state and considering the support from the state government and the local community, HUL has decided to set up the new manufacturing unit in Assam," it added.

Assam has been looking at attracting investment by offering favourable policies that encourage and incentivise companies to set up manufacturing units.

It is also intended to encourage suppliers to establish units for packing material supplies, and it is expected that the new unit will lead to the creation of ancillary, logistics and warehousing opportunities within the region, HUL added.

"Given the attractive outlook that the company sees in personal care, the additional capacity will support the growth ambition and enable the business better serve its consumers," the statement said.

HUL has a wide footprint of manufacturing operations with over 30 factories located across India.

On the management committee change, HUL said Mr Misra has decided to leave HUL to pursue an external opportunity.

Subsequently, Srinandan Sundaram, currently vice president-skin care, will take over from Mr Misra as the executive director-sales and customer development, and will join the HUL Management Committee. The change will be effective from 1st September, 2016.

"Under Srinandan's leadership, the Hair and Skin Care businesses have seen strong growth fuelled by innovations and brilliant marketing," HUL CEO and managing director Sanjiv Mehta said.