HUL shares were in the red in early trade on February 15. The FMCG major said it is in talks with the Andhra Pradesh government to collaborate on palm oil production.
The company, along with the state government, is looking to establish a palm plantation and oil mill, which is expected to create over 1,000 direct and indirect jobs.
At 9.20 am, HUL was trading at Rs 2,373 on the National Stock Exchange, down 0.6 percent from the previous session’s closing levels.
Palm oil finds wide use across industries — from biscuits to personal-care products. India is the world's biggest importer of palm oil.
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HUL 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 will lead to investments of over Rs 300 crore during the project development period, the company said in a filing on February 14.
The FMCG major reported a standalone net profit of Rs 2,519 crore for the December quarter, registering an increase of just 0.55 percent from Rs 2,505 crore in the late year.
HUL stock has lost around 1.5 percent in past five days and six percent in the six months.
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