
Shares of Hindustan Unilever saw a modest rise of over one percent in early trade on July 16. This comes after the company revealed its plans to sell its water purification business to AO Smith India.
Hindustan Unilever has approved the sale of this segment for an Enterprise Value of Rs 601 crore ($72 million). The company stated that this move will allow them to concentrate more on their core categories.
As of 11:05 AM, the shares were trading 1.07% higher at ₹2,648.45 on the NSE.
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.”