|
Mumbai: Hindustan
Lever Ltd ((HLL) has announced its decision to hive
off its Sewri facility in Mumbai, which manufactures
soap and soap intermediates, to a subsidiary. The company
also plans to dispose of its functionalised biopolymers
business including manufacturing facilities at Pondicherry.
The
board met on October 28 to consider these two proposals
for sale or otherwise.
. .
The Sewri plant, seen as a cost-intensive facility within
the HLL fold, has an employee strength of 1,174. This
facility is at a considerable cost disadvantage, according
to HLL officials.
"There
is a high incidence of octroi on raw materials, high
water cess, power tariff, lease rentals and other infrastructure
costs. The wage bill is also high," an official
said. The Sewri facility stands on land leased from
the Bombay Port Trust.
HLL
believes that hiving off this facility to a subsidiary
would result in
better focus in reducing cost and improve efficiencies.
"The transfer of both these units will help operations
on a standalone basis," the HLL official said.
|
