Hindustan Unilever sells rice biz |
As part of its renewed strategy to exit non-core businesses, FMCG major Hindustan Unilever (HUL) is exiting its rice exports business, which is primarily carried out under brands `Gold Seal Indus Valley` and `Rozana`. HUL is selling the business to LT Foods Middle East DMCC, a group company of LT Foods, which is the owner of the popular Basmati rice brand called Daawat — a market leader in India and the US.The deal envisages transfer of the brands and inventory for a consideration of Rs 25 crore, subject to adjustments on closing, which is lower than the annual turnover of the two brands in 2014-15, that is Rs 51 crore — a discount of 49%. The transaction is subject to fulfilment of certain conditions and the parties will work together to complete this over the next few months. Till then, HUL will continue to manage the business.Sanjiv Mehta, CEO & MD, HUL, said, "Over the years, Gold Seal Indus Valley and Rozana have become household names in the rice category across the overseas markets in which they operate. The brands enjoy strong equity and have been delighting consumers through a range of high quality offerings in Basmati rice.
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