The FMCG giant had acquired the facility when it bought out the 50 per cent Tata stake in Lakme-Lever last year. Along with the Lakme brand, HLL had also acquired two factories at Deonar and Kandla--both in Maharashtra.

The manufacturing activity in the factory came to a halt with an overwhelming majority of the employees accepting the VRS launched in December last year. The four employees--who did not opt for the VRS--are left at the factory with no definite responsibility.

The official spokesperson of HLL said: "The manufacturing activities have wound up and we are currently retaining a development centre at the factory premise. We still have not decided onthe fate the property." However, industry sources said HLL is set to develop the realty into a commercial or residential centre.

The Lakme-Lever products will henceforth be partly manufactured at the Lakme facility at Kandla while part of it will be sub-contracted.

HLL has all along maintained that it intends to develop all excess land under its fold. The development at the Denoar facility conforms to the company policy. It also has tied up with Tata Housing to develop its real estate projects.

Early last year HLL went ahead with plans to develop a 22-storey residential premise on the surplus land owned by the company at Wadala in central Mumbai. Seventy per cent of the flats--priced Rs 32 lakh to Rs 39 lakh--is slated to be sold to the public and the balance to Lever employees at a discount.

This project is slated for completion by March 2000. This was among the first of HLL's ventures into real estate development. The company, it is learnt, is keen to develop surplus land under its fold in asimilar fashion.