FMCG stock in focus after company to collaborate with Andhra Pradesh Govt to produce palm oil
15/2/2024 (Trade Brains), FMCG Stock engaged in the manufacturing and supplying of consumer goods in focus, on plans to collaborate with the government of Andhra Pradesh for the production of palm oil in the state.
With a market capitalization of Rs. 5,54,033 Crores, the shares of Hindustan Unilever Limited were trading at Rs. 2,351.10, down 1.58 percent from its previous day’s close price of Rs. 2,388.95.
Hindustan Unilever Limited is looking to collaborate with the government of Andhra Pradesh for the production of palm oil in the state. The members of the board met the Agriculture Minister of Andhra Pradesh Shri. Kakani GovardhanaReddy to reaffirm the Company’s commitment and intent to partner with the state government in the agriculture sector.
Following the discussions he welcomed the delegation and said that the state government wants to attract investments in the palm oil sector as it directly benefits farmers, and the industry and reduces its dependence on imports of the commodity.
Through this collaboration, Hindustan Unilever Limited seeks to partner with more than 15,000 farmers in Andhra Pradesh to create at least 30,000 hectares of oil palm plantations.
The proposed plan involves setting up sapling nurseries, palm fresh fruit bunch collection centers, and a state-of-the-art palm oil mill in the state, leading to investments of over Rs 300 crore over the project development period. The proposed palm oil mill is expected to create over 1000 direct and indirect jobs in the state.
Hindustan Unilever Limited is a Fast Moving Consumer Goods (FMCG) Company, it is primarily engaged in the manufacturing and supplying of consumer goods, operating through 5 segments i.e., Beauty & well-being, Personal Care, and Foods & Refreshments segments.
The segmental performance as of December 2023, is as follows, 36.59 percent from Home Care, 38.32 from Beauty & Personal Care, and 25 percent from Foods & Refreshments.
Some of the famous brands sold by the company are Surf Excel, Boost, Horlicks, Lifebuoy, Kissan, Knorr, Bru, Red Label Tea, Cornetto, and many more.
Its revenue from operations grew by 15.51 percent from Rs. 52,446 Crores in FY22 to Rs. 60,580 Crores in FY23, accompanied by increasing profits of Rs. 8,892 Crores to Rs. 10,143 Crores.