HUL announced on Friday the sale of its Annapurna and Captain Cook brands to Singapore-based Uma Global Foods for Rs 60.4 crore in order to leave the non-core atta and salt sector. It has reached an agreement to sell its atta and salt businesses, which operate under the trademarks ‘Annapurna’ and ‘Captain Cook,’ respectively, according to a company’s statement.
“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,” said HUL.
HUL stated that the proceeds from the sale of the two brands total Rs 60.4 crore.
According to the company, in the fiscal year 2021-22, both brands had a combined turnover of Rs 127 crore and generated less than 1 per cent of HUL’s total revenue.
“The brands are being sold to Uma Global Foods Pte Ltd, and Uma Consumer Products Private Ltd. which are subsidiaries of Reactivate Brands International, a Singapore-headquartered company and an affiliate of CSAW Aqbator Pte Ltd (Singapore),” it said.
CSAW is committed to purchasing and growing food companies in order to promote affordable wellbeing.
The agreement calls for the transfer of trademarks, copyrights, and other intellectual assets linked with India and other countries.
“The transaction is subject to customary closing conditions, and HUL will continue to manage the business until the completion of the transaction,” it said.
HUL CEO & Managing Director Sanjiv Mehta said: “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.”
Ashok Vasudevan, co-founder of Uma Global Foods, said: “We are confident of scaling them up and expanding globally, leveraging founders’ experience. These brands fit well with our mission to promote affordable wellness.”
With a sales of Rs 51,193 crore in FY22, Hindustan Unilever (HUL) is India’s largest Fast-Moving Consumer Goods (FMCG) firm.
