Hindustan Unilever Stock Surges On Sale Of Water Purification Business
Turnover of the water purification business proposed to be sold is Rs 293 crore or less than 1 per cent of HUL's turnover in FY 2023-24
Stocks of FMCG major Hindustan Unilever (HUL) made a gain of above 2 per cent in the Tuesday trading session after the firm declared the sale of its water purification business to A.O. Smith India Water Products for USD 72 million.
HUL stocks traded at Rs 2,680 with 2.39 per cent gain in the afternoon session on the National Stock Exchange (NSE).
“The board of directors at their meeting has approved the sale and divestment of company’s water purification business carried under the brand ‘Pureit’ including the trademarks, copyrights and other intellectual properties and identified assets and contracts associated with the business, as a going concern on slump sale basis, to A.O. Smith India Water Products,” stated HUL in an exchange filing.
"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 A. O. Smith," said Rohit Jawa, CEO and Managing Director, HUL.
Notably, turnover of the water purification business proposed to be sold is Rs 293 crore or less than 1 per cent of HUL's turnover in FY 2023-24.
HUL stated that the water purification business of the company is part of the overall home care business and its net worth is not separately tracked by the company.
