HLL Invests Rs 100 Cr In Himachal Plant

Mumbai, July 25 | Updated: Jul 26 2004, 05:31am hrs
FMCG major Hindustan Lever (HLL) has invested Rs 100 crore in a new manufacturing plant under construction in Himachal Pradesh which will have a capacity of 1,25,000 tonne. An HLL spokesperson said that the company has already set up a 30,000 tonne per annum personal products factory near Haridwar in Uttaranchal, with an investment of about Rs 150 crore.

Commissioning and trial production has started at the Uttaranchal plant that can produce toothpaste, skin care products and shampoos.

The spokesperson added that the facility coming up in Himachal Pradesh at Barotiwala in Solan district will manufacture soaps and detergents. The company declined to comment on any effect of the investment on the balance sheet. However, an analyst in Mumbai said that the above investments are very small for the FMCG giant.

The analyst added that the 10 years 100 per cent excise exemption and the five years income tax exemption provided by the government are the single-largest incentives for setting up plants in these states. The benefits arising from the logistical angle are additional ones.

Regarding India emerging as the global sourcing hub for the Pears soap of HLL, the spokesperson said that the company services the global requirement of Pears, from its factory at Khamgaon in Maharashtra.

He added that HLL can service any requirement of Pears, globally.

A Mumbai-based redistribution stockist said that along with the global demand, even in India there is a niche market for the soap with loyal consumers. This demand is especially prominent in the winter, according to the stockist.