Hindustan Unilever (HUL) has said its board had approved the formation of a new wholly-owned subsidiary with an authorised share capital of Rs 2,000 crore.
HUL’s Chief Financial Officer Srinivas Phatak was quoted as saying by Business Standard that the subsidiary was being set up for manufacturing purposes, with an aim at capitalising on the 15 per cent corporation tax available to new manufacturing firms.
According to Pathak, HUL was setting aside Rs 500-800 crore for investment in new plants under the subsidiary.
He added: “We are yet to evaluate which categories will be manufactured by the subsidiary and where the new plants will be located. But we are working towards it.”
The new unit would be set up in the next few months, after which work on the new plants would start, he said.
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