Hindustan Unilever acquiring palm undertaking in Telangana, plans nurseries and oil mill
Hindustan Unilever (HUL) is acquiring the palm undertaking of Vishwatej Oil Industries in Telangana’s Kamareddy district to support its palm localisation strategy. The company plans to establish nurseries, collection centers, and a palm oil mill while assisting farmers with sustainable practices. The move aligns with India’s National Mission on Edible Oils to boost domestic production and reduce imports.
Hindustan Unilever (HUL) is acquiring the palm undertaking of Vishwatej Oil Industries in Kamareddy district of Telangana as part of its palm localisation strategy.
Setting up sapling nurseries, palm fresh fruit bunch collection centres and a state-of-the-art palm oil mill in the State figure in the company’s plans, HUL said after its Board approved the acquisition on Wednesday. “HUL will establish a comprehensive farmer outreach programme to provide technical assistance to farmers for growing palm oil and introduce the best-in-the-class farming practices in line with the company’s global sustainable and regenerative agriculture principles,” the subsidiary of global FMGG giant Unilever said.
The announcement comes in the backdrop of the meeting Chief Minister A. Revanth Reddy-led delegation to the World Economic Forum had with Unilever CEO Hein Schumacher on the sidelines of the event in Davos. The Chief Minister’s office had said Unilever would be establishing a palm oil facility and refining unit in Telangana. Additionally, it said the Unilever team agreed to set up a bottle caps manufacturing unit in the State.
In its filing to the stock exchange, on the Board approval, HUL said its palm localisation strategy seeks to build supply chain resilience for palm derivatives through backward integration. Palm and its derivatives are key feedstock to manufacture a variety of company’s personal care, beauty and home care products. They are largely imported from Indonesia and Malaysia.
The company said with the acquisition it has taken a step forward to build infrastructure for palm under the aegis of India’s National Mission on Edible Oils. “This acquisition aligns with our firm belief that ‘what is good for India is good for HUL’ and gives us the opportunity to contribute to India’s national mission of increasing domestic oilseed production and reducing import dependence,” CEO and Managing Director Rohit Jawa said.
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Source : The Hindu
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