HUL Approves Sale of Water Purification Business to AO Smith for Rs 601 Cr

FMCG major Hindustan Unilever (HUL) on Monday, July 15 announced that its board has approved the sale and divestment of the company's Pureit water purification business to AO Smith for Rs 601 crore.

Key Takeaways from Hindustan Unilever’s Sale

• FMCG major Hindustan Unilever on Monday, announced that its board has approved the sale and divestment of the company's Pureit water purification business to AO Smith for Rs 601 crore.
• The water purification business, which is part of HUL's Home Care sector, had a revenue of Rs 293 crore in fiscal year 2023-24, accounting for less than 1% of HUL's total revenue.

AO Smith India Water Products Private Limited is a subsidiary of the US-based AO Smith Corporation, a global leader in water technology.

‘...the Board of Directors has approved the sale and divestment of the company's Water Purification business carried under the brand ‘Pureit’ including the trademarks, copyrights and other intellectual properties and identified assets and contracts associated with the business, as a going concern on slump sale basis, to A. O. Smith India Water Products Private,’ according to an exchange filing.

The water purification business, which is part of HUL's Home Care sector, had a revenue of Rs 293 crore in fiscal year 2023-24, accounting for less than 1% of HUL's total revenue.

Hindustan Unilever does not separately keep track of the net worth of its water-purifying business. This transaction will have no impact on HUL's ownership structure, and the company will continue to run the business until the transaction is completed.

The acquisition is subject to standard closing conditions, and HUL will continue to manage the business until the deal is completed.

Rohit Jawa, CEO and Managing Director of HUL, said. "This move is in line with our strategic intent to focus sharply on our core categories. Pureit provides essential water purification solutions to millions of loyal consumers, and I am confident the brand will thrive further under the ownership of A. O. Smith.”

Parag Kulkarni, president of A. O. Smith India Water Products Private Limited, said, "The Pureit brand, known for innovative water purification products, strong brand recognition, and dedication to customer service, complements A. O. Smith’s geographic and channel presence.

The Pureit team’s deep understanding of consumer needs and water treatment expertise adds tremendous strength to A. O. Smith in India, and we look forward to welcoming the Pureit team to the A. O. Smith family.”

About Hindustan Unilever Limited

Hindustan Unilever is an FMCG company that primarily operates in the Home Care, Beauty & Personal Care, and Foods & Refreshment areas. The corporation has manufacturing sites around the country and mostly sells in India. Its brands are distributed in over 80 lakh locations across India, with over 90% of all houses in India owning one or more of the company's branded products.

Within this section, the corporation sells items from a variety of categories. It has a vast portfolio that spans the economic pyramid, with a significant presence of brands in the mainstream, popular, and luxury categories. In this section, HUL also sells ketchup, jams, tea, coffee, soups, ice cream, nutrition goods, and other culinary items. 

It focuses on enhanced innovation, expanded penetration, and its Winning in Many Indias (WiMi) approach to boost sales. The company's brands are available in 80 lakh outlets across India, with about 90% of all homes using one or more of its branded items.

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