Unilever set to open P1.3-B Manila plant

Food and personal care manufacturing giant Unilever Philippines is set to open its P1.3-billion new plant in Manila.

“We will open the new facility in the next two months,” outgoing Unilever chairman and chief executive officer Sanjiv S. Mehta said yesterday.

According to Mehta, the new plant will be producing deodorants.

The Philippines is the leading manufacturer of deodorants for Unilever.

The Philippines is exporting deodorants to 40 countries. Unilever manufactures three brands namely Rexona, Axe and Dove.

Metha said 60 percent to 80 percent of the deodorants produced in the new facility will be sold overseas. “Most of it will be for exports. It will be around 60 to 80 percent depending on the capacity,” he noted.

In terms of volume, the capacity of the new plant located beside Unilever’s Manila office will be producing 150 million units of sticks and 80 million units of roll-ons.

Meanwhile, Mehta said Unilever’s consolidated sales amounted to P30 billion in 2007.

“We are eyeing double digit growth for the year so that is at least 10 percent,” Mehta noted.

“We want to grow faster than the economy and faster than the competitors,” he explained further.

For all three units of Unilever, food, home care and ice cream, Mehta said 2007 has been a “brilliant year.”

Mehta said all businesses grew by a double digit rate. Across the board, Unilever experienced a 12-percent growth last year while the market increased six to seven percent.

Mehta said Unilever was able to corner 42 percent of the market.

Earlier, Mehta disclosed that the company has earmarked P1 billion in order to repeat last year’s performance.

He said their capital expenditure for next year will be at least P1 billion as it focuses on marketing activities.

“This is a sort of business wherein marketing is very important. In fact, a big part of the expenses is allocated for marketing,” Mehta noted.

After serving as the chairman and CEO of Unilever Philippines for 14 months, Mehta will be moving to Unilever’s North Africa and Middle East business where he will serve as chairman.

Replacing him is Fernando Fernandez from Argentina.