One of the leading FMCG players of India, Hindustan Unilever, has approved the sale and divestment of its Water Purification business carried under the brand ‘Pureit’ as a going concern on a slump sale basis to A. O. Smith India Water Products for Rs 601 Crore.
This sale, subject to fulfillment of terms and conditions, includes trademarks, copyrights and other intellectual properties and identified assets and contracts associated with the business.
In the fiscal year ended March 31, 2024, the turnover of HUL’s water purification business was Rs 293 Crore, which is less than 1% of the company’s overall turnover.
That being said, the completion of the proposed transaction as per the company is expected to be three months and falls in line with HUL’s strategic intent to focus sharply on its core categories.
Currently, the transaction is subject to customary closing conditions, and HUL will continue to manage the business until the completion of the transaction.
Commenting on the development, Rohit Jawa, CEO and Managing Director, 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.”
To this, Parag Kulkarni, President, A. O. Smith India Water Products, added, “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.”
