Lockout at HUL's Doom Dooma plant

Consumer goods giant Hindustan Unilever Ltd (HUL) has declared a lockout at its factory in Doom Dooma, Assam, effective from July 15. The facility, which manufactures personal products, has close to 800 employees and accounts for 30,000 metric tonnes or about 15 per cent of the company's total production of personal products.

The personal products portfolio of HUL, including skin care, hair care, colour cosmetics, toothpastes and deodorants, accounted for about 55 per cent of the company's operating profits in 2006. The division contributed nearly 30 per cent or about Rs 3,500 crore to HUL's Rs 12, 100 crore sales in 2006.

The company, however, was confident that the lockout would not have any immediate impact on production schedules. "There is no impact on our overall production schedules as we have adequate buffering production capacity across our units," said a company spokesperson. However, HUL did not want to comment on the financial implications. "We cannot speculate on the financial impact as it will depend upon the resolution of the lockout. Our endeavour is to seek an early resolution of the issue," he added.

The lockout followed a series of what the company calls illegal strikes, launched by the workmen during the last six months. According to the company, the events took a serious turn from July 6, when the workers confined the managers and officers inside the factory.