Hindustan Unilever Limited (HUL) announced on July 15 the sale of its Pureit water purification business in India to AO Smith for ₹601 crore ($72 million). This announcement was made through a disclosure to the stock exchanges.
Rohit Jawa, CEO & MD of HUL, stated, “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.”
The FY24 turnover of the water purification business, which is part of HUL’s home care arm, was recorded at ₹293 crore, representing less than one percent of HUL’s total turnover.
Parag Kulkarni, president of AO Smith India Water Products Private Limited, commented, “The Pureit brand, known for innovative water purification products, strong brand recognition, and dedication to customer service, complements AO Smith’s geographic and channel presence. 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.”
AO Smith India Water Products Private Limited, a subsidiary of AO Smith Corporation, USA, is the buyer in this transaction. HUL confirmed there will be no change in its shareholding pattern following the sale. The completion of the transaction is expected within three months, subject to any extensions as per the transaction terms.
The transaction is subject to customary closing conditions. HUL will continue to manage the Pureit business until the transaction is finalized.
Pureit was first launched in Chennai in 2004 with the introduction of Pureit Classic, a gravity-based water purifier. It expanded across India in 2008 and entered the electric water purification segment in 2011.
Meanwhile, HUL’s board of directors is scheduled to meet on July 23 to consider and approve the unaudited standalone and consolidated financial results for the quarter ended June 30.
In Q4FY24, HUL reported a 6 percent drop in standalone net profit at ₹2,406 crore, down from ₹2,552 crore in the same quarter last year. Revenue from operations rose marginally to ₹14,693 crore, compared with ₹14,638 crore in the corresponding period last year.
