Hindustan Unilever Ltd said it will sell its non-core atta brand 'Annapurna' and salt business under the brand 'Captain Cook' to a Singapore-based company Reactivate Brands International for ₹604 mln.
"HUL's decision to divest is in line with the stated intent of exiting non-core categories while continuing to drive its growth agenda in the packaged foods business of dressings, scratch cooking and soups," HUL said in a release on Friday.
Annapurna and Captain Cook
Annapurna and Captain Cook were launched over two decades ago, yet had a revenue of only ₹1.27 bln in 2022-2023 (Apr-Mar), which amounts to less than 1% of the company's total topline.
These brands didn't fare well with increasing competition from rivals Tata Consumer Products Ltd and ITC Ltd, which are leaders in the atta and salt segments today.
The subsidiaries of the Singaporean company, Uma Global Foods and Uma Consumer Products, will receive the brands.
Civilian Services Acquisition Workshop Aqbator
An affiliate of Civilian Services Acquisition Workshop Aqbator (Singapore), Reactivate Brands International is dedicated to purchasing and expanding food brands to support accessible wellness.
The sale of all trademarks, copyrights, and other intellectual properties as well as any exclusive assets and contracts related to the brands are all included in the deal, which is anticipated to close in three months.
The shares of the company traded 0.4% higher at ₹2,525 on NSE, at 11:00 IST.
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