Hindustan Unilever Limited (HUL) will build two more nano facilities in the country’s Western region in response to a rise in premium goods and a shift in consumer purchasing habits. In these nano facilities, the fast-moving consumer goods (FMCG) major produces its premium items and D2C brands. Six nanofactories operated by the corporation have been established in the nation and can create product batches weighing 50 to 200 kg. “With new-age channels like e-commerce, pharma and digital channels are growing 5X times compared to the traditional channels, and this has also been reflected in the channels’ contribution to HUL sales. The conventional manufacturing system has been designed for scale with large batch sizes. This is suitable for the general trade market and mass brands, but for the new channels where a high assortment is table stakes, the volume per pack will be low and the number of SKUs will be very high. That is when we introduced the concept of nano factories,” Yogesh Mishra, Executive Director of the supply chain of HUL said.

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