Hindustan Unilever Ltd (HUL) has approved an undisclosed investment to acquire a 14.3% stake in Lucro Plastecycle Pvt Ltd, a firm specializing in recycling flexible plastics. The decision has been considered as a strategic move towards reinforcing HUL’s commitment to a circular economy by increasing plastic recycling capabilities and increasing the availability of recycled content in the packaging.
Usage of recycled plastic
Lucro is an integrated waste management and recycling firm involved in creating value from post-consumer flexible plastics. Traditionally, recycling from flexible plastics is not easy. With this move, HUL’s objective is to provide sustainable solutions and to promote recycled plastic usage in packaging across the industry.
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HUL’s Managing Director and CEO, Rohit Jawa invests a landmark in respect to environmental goals along with the growth of the business. ‘’This step supports our thought that what’s good for India is good for HUL. Creating a circular economy for plastic is not just a business requirement but a responsibility,’’ as quoted by PTI.
Lucro’s MD Ujwal Desai welcomes the partnership, mentioning that it would enable the firm to strengthen recycling capacity. It will also attract more adoption of post-consumer resin across industries.
HUL demerges its cream business
At the beginning of this year, HUL also announced a key change in its operations, including the demerger of its ice cream business. These developments were shared in the company’s Q3 FY25 results, as per a report by Financial Express.com.
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The decision was approved by the board on January 22 that HUL will demerge its ice cream division, incorporating a new entity, Kwality Wall (India) Ltd. The new company will have its operational independence for driving category-specific growth.
The demerger will be on a 1:1 shareholding ratio, in this all the HUL shareholders will be allotted one share in the newly made ice cream entity for every share they are currently owning.
(With inputs from PTI)
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