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FMCG major HUL on Friday announced selling of its Annapurna and Captain Cook brands to Singapore-based Uma Global Foods for Rs 60.4 crore to exit from non-core atta and salt business.
It has signed an agreement for the sale of its atta and salt business carried out under the brands 'Annapurna' and 'Captain Cook', respectively, the company said in a statement.
"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," said HUL.
About consideration received from sale of the two brands, HUL said it is Rs 60.4 crore.
In the financial year 2021-22, both the brand had a turnover of Rs 127 crore and had contributed less than one per cent of HUL's turnover, it said.
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"The brands are being sold to Uma Global Foods Pte Ltd, and Uma Consumer Products Private Ltd. which are subsidiaries of Reactivate Brands International, a Singapore-headquartered company and an affiliate of CSAW Aqbator Pte Ltd (Singapore)," it said.
CSAW is focused on acquiring and scaling up food brands to promote affordable wellness.
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," it said.
Both brands were launched more than two decades ago.
HUL CEO & Managing Director Sanjiv Mehta said: "Given our strategic priorities and portfolio choices, we believe it is in the business's best interest to sell these brands to Reactivate Brands International, which is well-positioned to unlock their full potential."
Ashok Vasudevan, co-founder of Uma Global Foods, said: "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 Limited (HUL) is India's largest Fast-Moving Consumer Goods (FMCG) company, with a revenue of Rs 51,193 crore in FY22.
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