The local unit of consumer goods giant Unilever is investing in the Philippines some 100 million euros (roughly P6 billion) over the next six years.
This will be on top of the 120 million euros that Unilever has already invested over the last three years, Unilever global CEO Paul Polman said in a briefing yesterday.
“[This additional investment] in fact reflects the growth of our business. There are two things that make this business grow. One is the economy doing better and more people [buying] our products … And the other is introducing new things to the Philippines. This has a lot of potential. Our business is doing very well here, it’s growing and so we need to have the capacity and expand this,” Polman said in a briefing Friday.
Due to its strong consumption story, the Philippines is an important market for Unilever, which draws a major part of its annual turnover from emerging markets.
“The strong and sustained GDP (gross domestic product) growth that the country is enjoying together with a vibrant consumer and retail environment has reinforced the Philippines’ role as a significant growth opportunity for Unilever,” Polman said.
This new expansion program, which begins this year, will see the upgrading of existing equipment and building of new facilities to increase the output of Unilever’s factories in the country.
Polman, who is in the country for a short visit, said the additional 100 million euros would be only for the manufacturing side, as the company invests in its brands annually.
“A company like ours makes more than just investments [in the manufacturing facilities]. We hire more people; we make investments in training; we make investments in the brands; we make investments in new smallholder farmers,” said Polman.
He added that Unilever regularly invests about another 100 million euros in its various brands.
Polman noted that the new expansion program was expected to generate more jobs across the company’s supply chain.
Unilever has around 1,800 direct employees, and indirectly employs some 15,000 more across its supply chain.
If the company is able to double its business over the next 10 years, then the company will be able to create another 8,000 direct and indirect jobs, he said.
Before his press briefing yesterday, Polman paid a courtesy call to President Aquino and affirmed the company’s commitment to support the government’s inclusive business agenda.
In a separate statement issued yesterday, Polman reiterated Unilever’s intent to work together with the government on long-term multiyear programs with key government agencies that will help enhance the lives of Filipinos in the areas of health and well-being, environment, nutrition and livelihood.
“Our Unilever Sustainable Living Plan is really an expression of the business model of the future where only businesses that create a positive social impact will prosper,” Polman said.