Hindustan Unilever (HUL) will set up two nano factories in addition to its six operational nano factories in the country. The company is actively pursuing the current format of low-volume per pack and high assortment to cater to the evolving requirements of its direct to consumer (D2C) brands and premium product segment.

These factories would be used to make customised products and assist in marketing innovations through small test batches. The fast-moving consumer goods (FMCG) major, which started manufacturing personal care products in nano factories plans to further extend its product range into home care and ice cream.

The existing nano factories can produce product batches from 50 to 200 kg, and manage packaging in a single assembly line. These have reduced the innovation lead time by 40 percent, wastage by 30 percent, and offer improved agility. The number of stock keeping units (SKU) has grown from a monthly to weekly frequency.

The nano factories typically operate inside the company’s big factories to leverage fixed assets and utilities, though these factories have the flexibility to be moved to new locations in rural, urban, or semi-rural areas for a short duration.

The move is motivated by an uptick in premium products and a change in consumer purchasing patterns.