HUL partners with Andhra Pradesh govt for Palm oil production

Hindustan Unilever Ltd. (HUL) is gearing up for a strategic partnership with the Andhra Pradesh government to venture into palm oil production in the state. In a recent filing, the consumer goods giant outlined plans to engage with over 15,000 farmers, creating expansive palm oil plantations covering 30,000 hectares. 

The comprehensive project involves the establishment of sapling nurseries, fruit bunch collection centers, and a cutting-edge palm oil mill. This initiative is anticipated to yield around 1,000 direct and indirect jobs, with a substantial investment of Rs 300 crore during the project's developmental phase. 

HUL sees this move as a tactical alignment with its backward integration strategy, particularly for the skin cleansing portfolio. The company lauds the Andhra Pradesh government's investor-friendly policies and expresses eagerness for this collaboration. 

The transition to palm oil cultivation is carefully planned, considering social, environmental, and economic factors, with a commitment to delivering positive impacts. HUL plans to roll out a farmer outreach program, providing technical assistance and implementing best-in-class farming practices for palm oil cultivation.

"The opportunity to set up an oil mill factory to source palm derivatives would be in line with our strategy of backward integration for our skin cleansing portfolio. We are energised by the investor-friendly policies of the Andhra Pradesh government and look forward to this collaboration,” said Dev Bajpai, executive director, of legal and corporate affairs at Hindustan Unilever.