NEW DELHI: FMCG giant Hindustan Unilever Limited (HUL) is selling its water purification business -- Pureit in India to AO Smith, a leading global water technology company, for Rs 601 crore ($72 million). There will be no change in the shareholding pattern of HUL following the proposed slump sale.
According to a regulatory filing, the completion of the transaction is expected to be completed within three months, subject to any extension as per the terms of the transaction documents.
“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 Rohit Jawa, CEO & MD of HUL.
For HUL, the FY24 turnover of the water purification business was recorded at Rs 293 crore, which is less than 1% of its turnover. Parag Kulkarni, president of AO Smith India Water Products Private Limited said, “The Pureit team’s deep understanding of consumer needs and water treatment expertise adds tremendous strength to AO Smith in India, and we look forward to welcoming the Pureit team to the AO Smith family.”
Pureit was first launched in Chennai in 2004 with the introduction of Pureit Classic. It entered the electric water purification segment in 2011.
Meanwhile, the board of directors of HUL is scheduled to meet on July 23 to approve Q1FY25 earnings results. HUL had reported a 6% drop in its standalone net profit at Rs 2,406 crore in the preceding quarter (Q4FY24). Revenue from operations in Q4 was marginally up at Rs 14,693 crore.