Hindustan Unilever is selling its atta and salt business under the brands ‘Annapurna' and ‘Captain Cook.'
What Happened: The company late Friday announced that it signed a sale agreement with Uma Global Foods Pte Ltd. and Uma Consumer Products Private Ltd. The two companies are subsidiaries of Reactivate Brands International, a Singapore-headquartered company.
The company said that the divestment was in line with its objective of getting out of the ‘non-core categories.' The company looks "to drive its growth agenda in the packaged foods business of dressings, scratch cooking, and soups."
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The retail giant in a regulatory filing said that the brand’s turnover for FY22 stood at around ₹127 crore – 1% of the company's total turnover.
Talking about the ₹60 crore deal the company's CEO & Managing Director, Sanjiv Mehta said, that the two decades-old brands enjoy strong equity and the company believes that Reactivate Brands International is well-positioned to unlock their full potential.
Mehta further added that given the "strategic priorities and portfolio choices, the company believes it is in its best interest to sell the brands."
Price Action: HUL shares traded 0.48% higher at ₹2,527 at market open on Monday.
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