Hindustan Unilever Limited (HUL) has signed an agreement for the sale of its atta and salt business, which it markets under the brands ‘Annapurna’ and ‘Captain Cook', respectively, to Uma Global Foods and Uma Consumer Products for Rs 60.4 crore, the company said in a stock exchange filing and press release on Friday.
Uma Global Foods and Uma Consumer Products are subsidiaries of Reactivate Brands International, a Singapore-headquartered company and an affiliate of CSAW Aqbator (Singapore).
CSAW is focused on buying and scaling up food brands to promote affordable wellness, HUL said in its release.
In FY22, both brands had a turnover of Rs 127 crore, which is less than one per cent of HUL's top line.
The transaction is expected to take place within a period of 90 days, subject to any extension as per terms of the transaction documents, HUL said in its exchange filing.
“The deal envisages the transfer of trademarks, copyrights and other intellectual properties associated with India and several other geographies. The transaction is subject to customary closing conditions, and HUL will continue to manage the business until the completion of the transaction,” the company said in its release.
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HUL’s decision to divest is in line with the intent of exiting non-core categories while continuing to drive its growth agenda in the packaged foods business of dressings, scratch cooking and soups, it added.
Sanjiv Mehta, managing director and CEO, HUL, said, “Launched more than two decades ago, Annapurna and Captain Cook enjoy strong equity. Given our strategic priorities and portfolio choices, we believe it is in the business' best interest to sell these brands to Reactivate Brands International, which is well-positioned to unlock their full potential.”
Ashok Vasudevan, co-founder of Uma Global Foods also said in the release that both brands have a long history of providing high quality food products to Indian consumers. “We are confident of scaling them up and expanding globally, leveraging founders’ experience. These brands fit well with our mission to promote affordable wellness.”
