Hindustan Unilever Limited (HUL) announced that it has signed an agreement to sell its atta and salt business carried out under the brands ‘Annapurna’ and ‘Captain Cook.’
Highlights
- HUL is planning to sell its atta and salt business to Uma Consumer Products
- This comes as a part of HUL’s plan to step away from non-core product categories
- Food and Refreshments business accounts for 26% of total revenue as on December 2022
Hindustan Unilever Limited (HUL) has signed an agreement for the sale of its atta (flour) and salt business for INR 60.4 crores (approx. $7.3 million). The brands are being sold to Uma Global Foods, and Uma Consumer Products, which are subsidiaries of Reactivate Brands International, a Singapore-headquartered company and an affiliate of CSAW Aqbator (Singapore). CSAW focuses on acquiring and scaling food brands to promote affordable wellness.
“Launched more than two decades ago, Annapurna and Captain Cook enjoy strong equity. Given our strategic priorities and portfolio choices, we believe it is in the business’s best interest to sell these brands to Reactivate Brands International, which is well-positioned to unlock their full potential.”
— Sanjiv Mehta, CEO and Managing Director of HUL.
HUL’s decision to divest aligns with the intent of exiting non-core categories while continuing to drive its growth agenda in the packaged foods business of dressings, scratch cooking and soups. The deal envisages the transfer of trademarks, copyrights and other intellectual properties associated with India and several other geographies. The transaction is subject to customary closing conditions, and HUL will continue to manage the business until the completion of the transaction.
“We are delighted to bring Annapurna and Captain Cook into our portfolio. Both these brands have a long history of providing high-quality food products to Indian consumers. We are confident of scaling them up and expanding globally, leveraging [the] founders’ experience. These brands fit well with our mission to promote affordable wellness.”
— Ashok Vasudevan, the co-founder of Uma Global Foods.
According to HUL, the deal envisages the transfer of trademarks, copyrights and other intellectual properties associated with India and several other geographies.
The food and refreshments category of HUL included the following brands:
- Knorr – soups, noodles, pasta, and seasonings
- Kissan – jams, ketchups, and sauces
- Lipton – tea and tea bags
- Annapurna – salt, spices, and instant mixes
- Brooke Bond – tea and tea bags
As of 2021, HUL’s Foods and Refreshments category accounted for around 26% of the company’s total revenue. However, the company does not publicly disclose the specific percentage share of each brand within the food and refreshments category.
HUL will continue to manage the business until the transaction is completed. However, the deal is subject to customary closing conditions.
