HUL Board approves acquisition of palm undertaking

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

The Board of Directors of Hindustan Unilever Limited (HUL) at its meeting 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 allows us to contribute to India’s National Mission of increasing domestic oilseed production and reducing import dependence.”