Unilever set to open P1-B factory in Manila

Food and personal care manufacturer Unilever Philippines  will open a new, P1-billion manufacturing facility in Manila next year to meet growing market demand.

In an interview, Sanjiv S. Mehta, Unilever chairman and chief executive officer (CEO), said the new facility is located beside its existing plant in United Nations Ave. in Manila.

The new factory will be making deodarants. Unilever produces leading deodorant brand Rexona.

Mehta did not reveal the plant’s capacity saying only that 80 percent of the deodorants produced will be sold locally while the remaining will be exported.

In the same interview, Mehta said Unilver has been growing at double the pace of the industry so far this year and the trend is expected to continue up to next year.

“The industry is growing six percent but Unilever was able to double that by recording 12-percent growth,” Mehta said.

“We would like to repeat this year’s double digit growth next year. We want to grow faster than the economy and definitely faster than our competitors,” he added.

Mehta said the hike in Unilever’s market share is the result of an aggressive marketing campaign.

“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.

According to him, the launch of the new anti-dandruff shampoo Clear has boosted Unilever’s standing. Currently, the newly introduced Clear shampoo enjoys a 12-percent market share. Mehta said he is optimistic the consumer base of Clear shampoo will grow bigger next year.

Aside from bringing in more revenues, he said the successful launch of Clear shampoo meant that the brand has eaten some of the market share of the competition.

For next year, Mehta said their strategy is to develop the entire industry instead of just concentrating on their own products.

“I would rather have a smaller share of a big pie than a big share of a smaller pie,” Mehta explained.

An example Mehta cited was the conditioner market. He said the market penetration of conditioner is only 20 percent. Creating more awareness for conditioner will open new opportunities for all conditioner manufacturers not just Unilever.

As per its official website, Unilever has an annual sales of over P24 billion and employs over 2,000 people nationally.

Over a decade ago, it was known as Philippine Refining Co. (PRC). Unilever Philippines started as an oil milling business which at its peak produced nearly 100,000 tons of coconut oil annually. Today the company is a leading manufacturer of home and personal care products, food products, and ice cream.