HUL acquires palm undertaking in Telangana to steps up on localisation efforts

The proposed plan involves setting up sapling nurseries, palm fresh fruit bunch collection centres and a state-of-the-art palm oil mill in the state.

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26 Aug, 2025 12:21

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Hindustan Unilever has stepped up on its localisation strategy for palm and its derivatives, acquiring the palm undertaking of Telangana-based Vishwatej Oil Industries.

HUL said the company aims to build supply chain resilience for palm derivatives, and will build infrastructure for palm oil collection and processing. Palm and derivatives are a key raw material to manufacture a range of HUL’s products, including personal care, beauty and home care products, and are mostly imported from Indonesia and Malaysia.

Palm Oil prices were higher by 22% QoQ in December quarter, and up 40% compared to a year ago. As of January, Both palm oil and tea prices have come off compared to the September peaks, but remain inflated on YoY basis. HUL said it has been resorting to price hikes to which has been 'in line with Net Material Inflation'.

Read More: HUL Q3 Net rises 19% YoY to Rs 2,984 crore due to one-time gain

"With this acquisition, HUL has taken a step forward to build infrastructure for palm under the aegis of India’s 'National Mission on Edible Oils'," said an HUL statement. The palm undertaking is based in the Kamareddy district of Telangana.

"This acquisition aligns with our firm belief that ‘what is good for India is good for HUL’ and gives us the opportunity to contribute to India’s National Mission of increasing domestic oilseed production and reducing import dependence," Rohit Jawa, CEO and Managing Director, HUL said.

HUL's plan include setting up of sapling nurseries, palm fruit collection centres, and a modern palm oil mill in Telangana. HUL said it will also set up a farmer outreach to offer technical assistance in growing palm oil as well as bring in best-in-the-class farming practices.

India is the world's largest importer of palm oil, procuring it mainly from Indonesia, Malaysia, Thailand, Singapore, and Papua New Guinea. In 2023, India imported $8.7 billion worth of palm oil.

Given the price volatility due to supply chain disruptions and geopolitical tensions, India has been working towards increasing the area under palm cultivation. The National Palm Oil Mission aims to increase the area under cultivation by 328,000 hectares by 2026.