HUL inks deal with A. O. Smith for sale of water purification business

Hindustan Unilever (HUL) said that it has signed an agreement with A. O. Smith, a leading global water technology company, for the sale of its Indian water purification business, which was carried under the 'Pureit' brand.

In FY24, HULs water purification business had recorded a turnover of Rs 293 crore.

"The water purification business of the company is part of the overall Home Care business and its net worth is not separately tracked by the company, the FMCG gaint stated.

The aforementioned divestment has been carried out at an enterprise value of $72 million (approximately Rs 601 crore). The consideration for the same would be received in cash.

Rohit Jawa, CEO & managing director of 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.

Hindustan Unilever is India's largest fast moving consumer goods company.

The FMCG major reported 5.72% fall in standalone net profit to Rs 2,406 crore in Q4 FY24 as compared to Rs 2,552 crore recorded in Q4 FY23. Revenue from operations rose marginally to Rs 14,693 crore in Q4 FY24 as against Rs 14,638 crore posted in Q4 FY23.

The scrip rose 0.93% to currently trade at Rs 2643.30 on the BSE.

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