Hindustan Unilever (HUL) has proposed to make an investment of about Rs 10 billion towards the setting up of a new manufacturing unit in the vicinity of its existing factory premises in Doom Dooma, Assam.

This investment is subject to receipt of requisite approvals and clearances. The new unit that is envisaged to be commissioned in early 2017 will augment the production capacity of Personal Care products for HUL.

HUL has a manufacturing facility in Doom Dooma Industrial Estate of Upper Assam. The facility was originally set up in 2001 and currently houses three manufacturing units that produce Personal Care products (shampoo, skin creams and toothpaste).

The Government of Assam has been looking at attracting investment into the state by offering favourable policies that encourage and incentivise companies to set up manufacturing units. With over 15 years of operating experience in the State and considering the support from the State Government and the local community, HUL has decided to set up the new manufacturing unit in Assam. It is also intended to encourage suppliers to establish units for packing material supplies and it is expected that the new unit will lead to the creation of ancillary, logistics and warehousing opportunities within the region.

This proposal is consistent with HUL's commitment to Make in India and a reflection of its priority to invest for sustained growth. Given the attractive outlook that the Company sees in Personal Care, the additional capacity will support the growth ambition and enable the business better serve its consumers. HUL has a wide footprint of manufacturing operations with over 30 factories located across India.

Shares of the company declined Rs 19.15, or 2.04%, to settle  at  Rs 920.45.  The total volume of shares traded  was  346,647 at  the BSE (Monday).