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FMCG major Hindustan Unilever (HUL) today reported an increase of 9.79 per cent in standalone net profit to Rs 1,173.90 crore for the first quarter ended June 30.
The company had posted a net profit of Rs 1,069.16 crore in April-June quarter of the preceding fiscal.
Net sales were up 3.56 per cent at Rs 7,987.74 crore during the quarter under review against Rs 7,712.71 crore in the corresponding period previous fiscal, the company said in a BSE filing.
The company shares ended down by 2.04 per cent at Rs 920.45 on the BSE.
New unit
The consumer goods major plans to invest about Rs 1,000 crore for setting up of a new manufacturing unit for personal care products in Assam.
The new unit will come up at the existing factory premises in Doom Dooma, Assam and is set to be commissioned early 2017. The facility was originally set up in 2001 and currently houses three manufacturing units that produce personal care products (shampoo, skin creams and toothpaste).
This investment is subject to receipt of requisite approvals and clearances, the company said in a statement.
Favourable govt policies
The Government of Assam has been looking at attracting investments into the State by offering favourable policies that encourage and incentivise companies to set up manufacturing units.
With over 15 years of operating experience in the State and considering the support from the State Government and the local community, HUL has decided to set up the new manufacturing unit in Assam.
It is also intended to encourage suppliers to establish units for packing material supplies and it is expected that the new unit will lead to the creation of ancillary, logistics and warehousing opportunities within the region.
'Make in India'
This proposal is consistent with HUL’s commitment to Make in India and a reflection of its priority to invest for sustained growth.
Given the attractive outlook that the company sees in personal care segment, the additional capacity will support the growth ambition and enable the business better serve its consumers. HUL has a wide footprint of manufacturing operations with over 30 factories located across India.
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