The FMCG major said that it has signed an agreement with Uma Global Foods and Uma Consumer Products for the sale of its atta and salt business for a consideration of Rs 60.4 crore.
The company's atta and salt business carried out under the brands 'Annapurna' and 'Captain Cook' are being sold to Uma Global Foods and Uma Consumer Products which are subsidiaries of Reactivate Brands International, a Singapore-headquartered company and an affiliate of CSAW Aqbator (Singapore). CSAW engaged in the business of designing, manufacturing and marketing wellness products in Singapore and other countries with a purpose to promote affordance wellness.The revenue contributed by said brands was Rs 127 crore which was less than 1% of the company's turnover in financial year 2021-2022.
The company said that subject to fulfillment of terms and conditions as under the transaction documents, the closing for the transaction is expected to occur within a period of 90 days, subject to any extension as per terms of the transaction documents.
HUL's decision to divest is in line with the stated intent of exiting non-core categories while continuing to drive its growth agenda in the packaged foods business of dressings, scratch cooking and soups.
The deal envisages the transfer of trademarks, copyrights and other intellectual properties associated with India and several other geographies. The transaction is subject to customary closing conditions, and HUL will continue to manage the business until the completion of the transaction.
Sanjiv Mehta, chief executive officer & managing director of HUL, said, "Given our strategic priorities and portfolio choices, we believe it is in the business' best interest to sell these brands to Reactivate Brands International, which is well-positioned to unlock their full potential."
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Ashok Vasudevan, Co-Founder of Uma Global Foods, said, "We are delighted to bring Annapurna and Captain Cook into our portfolio. Both these brands have a long history of providing high quality food products to Indian consumers. We are confident of scaling them up and expanding globally, leveraging founders' experience. These brands fit well with our mission to promote affordable wellness."
Hindustan Unilever is engaged in the fast moving consumer goods (FMCG) business comprising primarily of home care, beauty & personal care and foods & Refreshment segments.
The company's consolidated net profit rose 7.7% to Rs 2,474 crore on 16% jump in net sales to Rs 15,343 crore in Q3 FY23 over Q3 FY22.
The scrip rose 0.48% to Rs 2,527 on the BSE.
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