Unilever outsourcing boom for HLL

HLL vice chairman M.K. Sharma said: ‘‘A bulk of our HPC and foods exports consists of orders executed for Unilever.’’ HPC exports form around Rs 400-450 crore, while foods exports are around Rs 550 crore. Given these numbers, and the fact that HLL has been getting more orders for sourcing products from Unilever, the consumer products major is close to touching the Rs 1,000 crore mark on this front.

According to HLL director (finance & IT) D. Sundaram, the company has received sourcing orders from Japan and Russia for tea bags, and from Western Europe for toothpaste. SSKI Securities vice president Nikhil Vora said HLL’s exports are not significant as compared to the entire business. However, he felt that over the next 4-5 years the numbers would increase.

Exports form just around 12 per cent of HLL’s turnover. The company has exited from non-value added exports in the last 2-3 years. Exports profitability was also impacted in the December quarter due to the appreciating rupee.

Meanwhile, HLL’s business process outsourcing (BPO) activity consists of two parts, one for giving shared services to its own operations and the other for non-HLL clients.

It already gets business from Australia and New Zealand and, as HLL group treasurer & head (M&A & Investor Relations) SP Mustafa said, the company is looking forward to such business from Saudi Arabia.