The board of Hindustan Unilever (HUL) has sanctioned the sale of its water purification business, Pureit, to A.O. Smith’s India division for an enterprise value of Rs 601 crore, equivalent to $72 million, as revealed in a stock exchange announcement on Monday. HUL, a prominent player in the fast-moving consumer goods (FMCG) sector, stated that this divestment aligns with its strategic objective to concentrate on its core business areas.
“This decision aligns with our strategic goal to concentrate on our core categories. Pureit offers vital water purification solutions to millions of dedicated customers, and I am confident the brand will continue to prosper under A. O. Smith’s ownership,” stated Rohit Jawa, CEO & Managing Director of HUL.
The transaction will be executed on a slump sale basis, following the board’s decision to transfer the business to A.O. Smith India Water Products.
Parag Kulkarni, president of A. O. Smith India Water Products Private Limited, expressed that the Pureit brand, renowned for its innovative water purification solutions, strong market presence, and commitment to customer service, perfectly complements A. O. Smith’s geographic and channel strengths.”The Pureit team’s deep knowledge of consumer requirements and expertise in water purification greatly enhances A. O.” We are excited to welcome the Pureit team into the A. O. Smith family,” Kulkarni added.
HUL introduced Pureit in 2004 in Chennai, later expanding its availability nationwide in 2008. The company ventured into the electric water purification market in 2011, further solidifying its presence in the water treatment industry.
By divesting Pureit, HUL aims to refine its focus on core categories, ensuring that its strategic goals remain aligned with market demands and consumer needs. The transition of Pureit to A.O. Smith is expected to enhance the brand’s growth and innovation under new ownership, leveraging A.O. Smith’s extensive geographic and channel presence. The collaboration between the Pureit team and A.O. Smith is anticipated to bring about a robust integration of expertise and consumer insights, fostering the development of superior water purification solutions for the Indian market.
This sale underscores HUL’s commitment to strategic realignment and its dedication to optimizing its portfolio by concentrating on its primary business segments. As Pureit moves under the stewardship of A.O. Smith, it is poised for continued success, driven by a shared vision of innovation and customer satisfaction in the water purification domain.