Outsourcing To Unilever Set To Turn Rs 1,000 Cr Biz For HLL

Mumbai, May 2 | Updated: May 3 2004, 05:30am hrs
Sourcing from its parent Unilever is close to becoming a Rs 1,000 crore business for fast-moving consumer goods (FMCG) giant Hindustan Lever Ltd (HLL).

HLL clocked total exports of Rs 1,246 crore in the calendar year ended December 2003. Its mainline businesses home and personal care (HPC) and foods contributed about Rs 1,000 crore to its export turnover, and bulk of the HPC and foods exports are sourced by Unilever.

HLL vice-chairman MK Sharma told FE: A bulk of our HPC and foods exports consists of orders executed for Unilever. HPC exports form around Rs 400-450 crore, while foods exports are around Rs 550 crore. Given these numbers, and the fact that HLL has been getting more orders for sourcing products from Unilever, the consumer products major is close to touching the Rs 1,000 crore mark on this front.

According to HLL director (finance & IT) D Sundaram, the company has received sourcing orders from Japan and Russia for tea bags, and from Western Europe for toothpaste.

SSKI Securities vice president Nikhil Vora said HLLs exports are not significant as compared to the entire business. However, he felt that over the next 4-5 years the numbers would increase. Exports form just around 12 per cent of HLLs turnover. The company has exited from non-value added exports in the last 2-3 years. Exports profitability was also impacted in the December quarter due to the appreciating rupee.