In a stock exchange filing yesterday evening, HUL said that its Board of Directors, in a meeting held on July 15, 2024, approved the sale and disposal of the company's water treatment business under the brand 'pureit' to AO Smith India Water Products Private Limited, a subsidiary of AO Smith Corporation, USA. The transaction includes the trademarks, copyrights and other intellectual property and identified assets and contracts related to the business as a going concern on a slump sale basis.
“There will be no change to HUL’s shareholder structure as a result of the proposed sell-off,” HUL said in its regulatory notice.
According to the press release, the transaction is expected to close within three months, subject to the satisfaction of the conditions contained in the transaction documents.
In a separate press release this morning, HUL said that its board will meet on Tuesday, July 23, 2024, to announce financial results for the quarter ended June 30, 2024. According to a recent report by CRISIL Ratings, the FMCG sector is expected to grow by 7-9% in revenue this fiscal year, as compared to an estimated growth of 5-7% in FY2024. This increase will be driven by expected volume growth due to revival in rural demand and steady urban demand.
