Thank you very much for pointing this out Henry Vilminko. You can generate the users by editing csv file (use export for edit option) and follow the below given steps.
If you want to create new native users you can just leave the internal_id field empty and HSS will generate a new id automatically. The password can be given in plain text – Shared Services will encrypt it before storing the user in the database. The file shown below will create three new test users in Native Directory when imported through LCM.
testuser1,Native Directory,testuser1,Test1,User1,Test User Number1,,,testpassword1,true
testuser2,Native Directory,testuser2,Test2,User2,Test User Number2,,,testpassword2,true
testuser3,Native Directory,testuser3,Test3,User3,Test User Number3,,,testpassword3,true