HUL To Divest Its Pureit Water Purification Biz; Sell It To A.O. Smith For Rs 600 Cr

Hindustan Unilever has decided to divest its two-decade-old water purification business, currently operating under the Pureit brand. This sale includes the associated trademarks, copyrights, intellectual properties, identified assets, and contracts, all of which will be transferred to A. O. Smith India Water Products as a going concern on a slump sale basis.

The sale agreement between the two brands was signed on July 15 and the expected date of completion is about three months.

In its global release, A.O. Smith said that the purchase price will be approximately Rs 600 crore in cash, subject to customary adjustments.

“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 AO Smith,” shared Rohit Jawa, CEO & Managing Director of HUL in a company statement.

“We believe the addition of Pureit will strengthen our leadership position as a global supplier of premium water treatment products and will double our market penetration in South Asia. The acquisition will also support our corporate strategy by enhancing our premium product portfolio and distribution capabilities,” added Kevin J Wheeler, Chairman and CEO of AO Smith.

For FY2023-24, the water purification business, which is part of the HUL home care division, generated a turnover of INR 2,930 million, accounting for less than 1 per cent of HUL's total turnover.