Hindustan Unilever Shares Jump 1% After ₹60-Crore Deal

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.

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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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Posted In: AnnapurnaDivestmentFMCGHindustan UnileverHULpackaged foodsWheat