MUMBAI: HUL is selling its water treatment business to the Indian unit of US water technology company AO Smith for an enterprise value of Rs 601 crore ($72 million).
The move comes as the consumer goods giant looks to sharpen its focus on core categories, HUL said in a statement on Monday. It is also in line with parent company Unilever's decision to sell the broader Pureit business to AO Smith. Pureit sells a range of water purifiers in India, Sri Lanka, Bangladesh, Vietnam and Mexico, among other countries.
HUL had first launched Pureit in Chennai in 2004 and rolled it out nationwide in 2008. The business, part of HUL's Home Care division, had revenues of Rs 293 crore in fiscal 2024 – less than 1% of the company's total revenue.
The transaction will be done through a fire sale and there will be no change in HUL's shareholder structure after the sale, which is expected to be completed in three months, the company said. “This move is in line with our strategic intent to focus heavily on core categories. Pureit provides essential water purification solutions to millions of loyal customers and I am confident that the brand will continue to thrive under AO Smith's ownership,” said Rohit Jawa, CEO and Managing Director of HUL. CFO Ritesh Tiwari said the deal unlocks “good value” for the company. HUL will continue to run the company until the transaction is completed.
Analysts tracking the FMCG sector said the deal was a positive development for HUL as the water treatment business is extremely competitive and very different from a typical FMCG business.
The move comes as the consumer goods giant looks to sharpen its focus on core categories, HUL said in a statement on Monday. It is also in line with parent company Unilever's decision to sell the broader Pureit business to AO Smith. Pureit sells a range of water purifiers in India, Sri Lanka, Bangladesh, Vietnam and Mexico, among other countries.
HUL had first launched Pureit in Chennai in 2004 and rolled it out nationwide in 2008. The business, part of HUL's Home Care division, had revenues of Rs 293 crore in fiscal 2024 – less than 1% of the company's total revenue.
The transaction will be done through a fire sale and there will be no change in HUL's shareholder structure after the sale, which is expected to be completed in three months, the company said. “This move is in line with our strategic intent to focus heavily on core categories. Pureit provides essential water purification solutions to millions of loyal customers and I am confident that the brand will continue to thrive under AO Smith's ownership,” said Rohit Jawa, CEO and Managing Director of HUL. CFO Ritesh Tiwari said the deal unlocks “good value” for the company. HUL will continue to run the company until the transaction is completed.
Analysts tracking the FMCG sector said the deal was a positive development for HUL as the water treatment business is extremely competitive and very different from a typical FMCG business.
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