Hindustan Unilever has approved the sale of its water purification business to AO Smith India for an Enterprise Value of Rs 601 crore ($72 million), a move that the company says will help focus on core categories.
Moneycontrol had reported in March citing people aware of the development that Hindustan Unilever was exploring potential sale of the water purifier business and had held exploratory talks with prospective buyers.
The water purification business was being run under the ‘Pureit’ brand, and the deal has been struck on a slump sale basis, Hindustan Unilever said in an exchange filing on July 15.
The deal is in line with HUL's strategic intent to "focus sharply on our core categories", the company added.
“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,” Rohit Jawa, CEO & Managing Director of HUL said.
Parag Kulkarni, president of A. O. Smith India said Pureit is known as a strong brand which complements its geographic presence.
"The Pureit team’s deep understanding of consumer needs and water treatment expertise adds tremendous strength to A. O. Smith in India,” Kulkarni added.
The FY24 turnover of the water purification business - part of the overall Home Care arm - was recorded at Rs 293 crore, which is less than one percent of HUL’s annual turnover.
The transaction is expected to be completed within three months, the company said.
Pureit was first launched in Chennai in 2004 and then went pan-India in 2008. The company entered the electric water purification segment in 2011.
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