The Board of Directors of Hindustan Unilever Limited (HUL) at its meeting held today approved the acquisition of the palm undertaking of Vishwatej Oil Industries Private Limited, as a part of HUL's Palm localisation strategy. The palm undertaking is based in the Kamareddy district of Telangana.
Palm and its derivatives are a key feedstock to manufacture a variety of HUL's Personal Care, Beauty and Home Care products and are largely imported from Indonesia and Malaysia. HUL's palm localisation strategy aims to build supply chain resilience for palm derivatives through backward integration. With this acquisition, HUL has taken a step forward to build infrastructure for palm under the aegis of India's 'National Mission on Edible Oils'.
The proposed plan involves setting up sapling nurseries, palm fresh fruit bunch collection centres and a state-of-the-art palm oil mill in the state. 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.
Rohit Jawa, CEO and Managing Director, HUL said: "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."
Shares of Hindustan Unilever Limited was last trading in BSE at Rs. 2322.90 as compared to the previous close of Rs. 2342.95. The total number of shares traded during the day was 218717 in over 12568 trades.
The stock hit an intraday high of Rs. 2349.80 and intraday low of 2255.00. The net turnover during the day was Rs. 504363467.00. |