The Hindu Business Line : HLL to use Haridwar facility to make small-pack products

The fast-moving consumer goods major has been able to secure 20 per cent of its sales in home and personal care (HPC) products from small packs so far, said Mr Arun Adhikari, Managing Director - HPC, HLL.

"Small packs give us the tonnage," he said. They also help in providing customers a chance to test products such as shampoos, toothpastes or skin creams, he said.

In shampoos alone, small packs and sachets contribute 70 per cent of tonnage.

HLL has migrated some of its volumes on to the small pack and sachets in both its HPC and foods business. Low value packs have helped the company reach a wider range of consumers across the country.

The company has made an investment of Rs 130 crore in setting up a 30,000-tonne per annum factory at Haridwar, Uttaranchal, to manufacture toothpaste, skin cream and lotion, shampoo, face and body wash products, largely in the low value range.

For HLL this facility would help in costs reduction not only operational (because of the high-speed machines) but also logistics. Products manufactured at this facility will be primarily for the markets of the northern region, Mr Adhikari said.

"About 25 per cent of our personal products sales come from the northern region. This plan will enable us to manage our supply chain costs much better and also help in lowering our transportation and logistics costs," Mr M.K. Sharma, Vice-Chairman, HLL, told visiting journalists.

At the moment, the Uttaranchal facility will be used for manufacturing small packs, while the demand for big packs in the northern region will be met from HLL's other personal products factories.

The fast-growing brands in this region for HLL in its personal products portfolio are Fair & Lovely, Wheel and Lifebuoy. The Uttaranchal facility is expected to help the company to look at entering new markets. Parts of eastern Uttar Pradesh are yet untapped by organised FMCG players, therefore offering an opportunity for HLL, according to Mr Adhikari.

Apart from propelling HLL's small pack sales, the Haridwar facility is also a benchmark for the company in terms of speedy implementation of the project, Mr Sharma said. "In terms of employment, we have taken care to hire people from across the State allowing for equal representation. Our process has been entirely based on merit," he said.

The facility has 350 employees, additional employment of 1000 people coming from the ancillary units.

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