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Hindustan Unilever Limited (HUL) has announced the acquisition of the palm undertaking of Vishwatej Oil Industries Private Limited, located in Kamareddy district, Telangana, India. This move is aimed at strengthening HUL’s supply chain resilience by integrating palm sourcing locally, which is a crucial raw material for its Personal Care, Beauty, and Home Care products. Currently, HUL relies heavily on imports from Indonesia and Malaysia, but this acquisition will enable the company to tap into the local market and reduce its dependence on foreign imports.
The acquisition also aligns with India’s National Mission on Edible Oils, which aims to promote self-reliance in palm oil production. To achieve its goals, HUL plans to establish sapling nurseries, collection centers for fresh fruit bunches, and a state-of-the-art palm oil mill in Telangana. The company will also launch a farmer outreach program, offering technical support and training in sustainable and regenerative agricultural practices to enhance palm oil cultivation.
The acquisition is expected to benefit local farmers by providing them with better prices for their produce, technical know-how, and market linkage. It will also create job opportunities and generate income for the local communities. Moreover, the company’s commitment to sustainable and regenerative agricultural practices will help to reduce the environmental impact of palm oil production and promote a more sustainable future.
This strategic acquisition demonstrates HUL’s commitment to creating a more resilient and sustainable supply chain, while also supporting the growth of local businesses and communities. By integrating palm oil production into its operations, HUL can reduce its dependence on imported raw materials, improve supply chain stability, and contribute to the development of the local economy. The company’s focus on sustainable and regenerative practices will ensure that its activities have a positive impact on the environment and the local communities it serves.