Hindustan Unilever Ltd (HUL) signs an agreement to sell Annapurna and Captain Cook to a Singapore-headquartered company
- ByStartupStory | February 18, 2023
Hindustan Unilever Ltd (HUL) said it has signed an agreement to sell its flour brand ‘Annapurna’ and salt brand ‘Captain Cook’ for Rs 60.4 crore.
The brands are being sold to Uma Global Foods and Uma Consumer Products, which are subsidiaries of Reactivate Brands International, a Singapore-headquartered company, HUL said in a release.
HUL added that its 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”.
The deal to sell Annapurna and Captain Cook includes the transfer of trademarks, copyrights and other intellectual properties associated with India and several other geographies, the company noted.
Both the brands, launched over two decades ago, have made a significant mark in the Indian market. According to HUL’s chief executive officer and managing director Sanjiv Mehta, it is in the “business’ best interest” to sell Annapurna and Captain Cook to Reactivate Brands, “which is well-positioned to unlock their full potential”.
Uma Global Foods c-founder Ashok Vasudevan said both the brands “have a long history of providing high quality food products to Indians.
“We are confident of scaling them up and expanding globally, leveraging founders’ experience. These brands fit well with our mission to promote affordable wellness,” he added.
The sale agreement is subject to customary closing conditions, and HUL will continue to manage the business until the transaction is completed.
HUL said its standalone net profit for the third quarter ended December 2022 rose 11.6% year-on-year (YoY) to ₹2,505 crore. The firm had reported a profit of ₹2,243 crore in the corresponding quarter of last year.
The company’s scrip closed 0.48 per cent down at ₹2,515 on BSE.
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