Unilever to establish two manufacturing units in India following agreement at WEF
INDIA – Unilever, a global fast-moving consumer goods (FMCG) giant, has announced plans to establish two new manufacturing facilities in Telangana, India.
The proposed units include a palm oil processing and refining facility in Kamareddy district, along with a manufacturing unit for bottle caps.
This agreement marks the first significant deal secured by the Telangana delegation, led by Chief Minister A. Revanth Reddy, during the World Economic Forum (WEF) 2025 annual conference in Davos, Switzerland.
During discussions at the forum, Chief Minister Reddy emphasized Telangana’s strategic advantages, including its central location connecting various Indian regions, robust logistics infrastructure, ease of doing business, and progressive policies.
He also highlighted the State’s consumption-driven market, positioning it as an ideal hub for manufacturing and supply chain operations.
In response, Unilever’s CEO confirmed the company’s intent to invest in Telangana, supported by the State government.
The palm oil facility and refining unit aim to strengthen the company’s supply chain capabilities, while the bottle cap manufacturing unit is expected to reduce reliance on imports and bolster local production.
Unilever operates in India under Hindustan Unilever Limited (HUL).
Quarter 3 results
In its recent financial performance, HUL reported a 19 percent year-on-year (YoY) increase in profit to Rs 3,001 crore (US$347M) in the third quarter, boosted by a one-time gain of Rs 509 crore (US$58.8M) from the divestment of its Pureit business.
Sales grew by 2 percent YoY to Rs 15,195 crore (US$1.76B) during the same period.
CEO and MD Rohit Jawa attributed the company’s growth to superior brand performance, investments in capabilities, and consistent margin maintenance.
Operating profit rose marginally by 1 percent YoY to Rs 3,570 crore (US$412.8M), with margins slightly declining to 23.5 percent.
Segment-wise, HUL’s home care business witnessed a 6 percent sales growth, driven by fabric wash and household care products. The foods business experienced flat sales growth due to subdued consumption.
However, coffee achieved double-digit growth, and premium tea brands like 3 Roses and Taj Mahal posted low single-digit gains. Nutrition drinks maintained market leadership despite a declining category, while packaged foods recorded mid-single-digit growth.
“Actions to accelerate consumption through adjustments to pricing architecture for consumption packs executed in the quarter,” HUL said.
Packaged foods delivered mid-single digit growth led by strong performance in future core and market makers segments. Ice-cream revenue remained flat year-on-year.
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