INDIA – Hindustan Unilever Ltd (HUL) has announced its decision to divest its water purification business to the Indian arm of US-based water technology company AO Smith for Rs 601 crore (US$72 million).  

The move is part of HUL’s strategy to focus on its core categories and aligns with Unilever’s broader decision to sell the Pureit business to AO Smith. 

Pureit, which sells a range of water purifiers, operates across India, Sri Lanka, Bangladesh, Vietnam, and Mexico.  

“The board of directors at their meeting held on July 15, 2024, 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 a slump sale basis to AO Smith India Water Products Pvt Ltd,” HUL said in a regulatory filing. 

HUL first launched Pureit in Chennai in 2004 and introduced it nationally in 2008. The business, which is part of HUL’s home care segment, posted a turnover of Rs 293 crore (US$35.06M) in FY24, accounting for less than 1 percent of the company’s total turnover. 

“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 AO Smith,” said HUL CEO and Managing Director Rohit Jawa. 

The transaction is subject to customary closing conditions, and HUL will continue to manage the business until the completion of the transaction.  

In the 2023-2024 fiscal year, HUL reported a turnover of Rs 59,579 crore (US$71.29M), with underlying sales growth of 2 percent.  

The company’s EBITDA margin remained healthy at 23.8 percent, with a year-on-year increase of 40 basis points. Profit after tax and earnings per share increased by 4 percent and 2 percent, respectively. 

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