New Unilever plant to start operations; exports to increase

MANILA, Philippines - Anglo-Dutch consumer goods giant Unilever Philippines will start operations in its new P1-billion manufacturing plant in Manila by mid-2008 in a bid to boost its export business. Unilever officials, speaking to reporters on Tuesday, said the plant will manufacture popular deodorant products Rexona, Axe and Dove. "Right now, we’re a global supplier of the mini-stick deodorant product. We supply to close to 50 countries and we’re aiming to become a global supplier for all formats (stick, roll-on and spray)," Vice-President for Corporate Affairs Chito Macapagal said. About 60-80% of the plant’s output will be sold abroad. The combined capacity of the company’s existing and new facilities for deodorant products is 150 million units for sticks and 80 million for roll-ons. The move is also expected to propel Unilever’s growth by 10% to 12% this year, outgoing Chairman and Chief Executive Officer Sanjiv Mehta said. Robust private consumption, which is the main driver of economic growth in the country, is also expected to further boost Unilever’s performance this year. "We are a healthy company. We grew by 12% last year and we’re eyeing another double-digit growth this year. We’d like to see double-digit growth for all our three business units — ice cream, foods and home and personal care," he said. The company cornered 57% of the local ice cream market last year and 70% of the deodorant market. For the shampoo segment, Mr. Mehta said his company has dominated the local market with strong sales of Clear shampoo. Unilever’s personal care products division accounts for about 65% of total revenues while the food category accounts for 35%. Mr. Mehta, who served as Unilever chief for 14 months, said the company is expected to ride on the country’s robust economic growth, largely buoyed by high consumer-spending. "In a country where private consumption is a very key component of GDP (gross domestic product), I see immense potential for consumer goods. I am very bullish about prospects here. Unilever Philippines is well-poised for sustained long-term growth," he said. The company ships deodorant products to major markets, including the United States. The deodorant formats account for about 70% of the firm’s exports to the US . Unilever earlier said the demand for different types of deodorants in the US market is expected to increase, adding US-based companies are not flexible enough to produce deodorants in various formats, as compared to the Philippines. — Bernardette S. Sto. Domingo, BusinessWorld