HUL to sell Pureit to AO Smith India for Rs 600 crore

(You can now subscribe to our

(You can now subscribe to our Economic Times WhatsApp channel

The board of Hindustan Unilever has approved the sale of the company's water purification business Pureit to A.O. Smith's India arm for an enterprise value of Rs 601 crore, or $72 million, the company said in a stock exchange statement on Monday. HUL , a leading fast-moving consumer goods (FMCG) company, said this sale is in-line with its strategic intent to focus sharply on its core strategies."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," said Rohit Jawa, CEO & Managing Director of HUL.The sale will be done on a slump sale basis following the board decision to sell it to A.O. Smith India Water Products."The Pureit brand, known for innovative water purification products, strong brand recognition and dedication to customer service, complements A. O. Smith’s geographic and channel presence," said Parag Kulkarni, president of A. O. Smith India Water Products Private Limited."The Pureit team’s deep understanding of consumer needs and water treatment expertise adds tremendous strength to A. O. Smith in India, and we look forward to welcoming the Pureit team to the A. O. Smith family," Kulkarni added.HUL launched Pureit in 2004 in Chennai, only to be introduced nationwide in 2008. The company entered the electric water purification segment in 2011.(More to come)