Hindustan Unilever Ltd (HUL) on Friday announced the sale of its atta and salt business carried out under the brands ‘Annapurna’ and ‘Captain Cook’.
They are being sold to Uma Global Foods Pte Ltd and Uma Consumer Products Pvt Ltd, which are subsidiaries of Reactivate Brands International, a Singapore-based company, and an affiliate of CSAW Aqbator Pte Ltd of Singapore.
These brands are being sold for a consideration of Rs 60 crore. They had posted a turnover of Rs 127 crore in 2021-22, which was less than 1 per cent of the FMCG giant’s topline for that year.
In a late evening regulatory filing, HUL said the transaction is likely to be completed within a period of 90 days, subject to any extension under the terms of the deal.
HUL said its decision to divest the brands 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, it added.
“Launched more than two decades ago, Annapurna and Captain Cook enjoy strong equity. 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,” Sanjiv Mehta, CEO and managing director of HUL, said.
