CCI clears HUL-LT Foods deal on rice exports biz
The Dollar Business Bureau
Hindustan Unilever Ltd (HUL), a leading Indian FMCG company, has got the approval of the fair trade regulator Competition Commission of India (CCI), for selling its business of rice exports to LT Foods Ltd.
The pact, which was announced in March 2016, permits transfer of HUL’s brands and inventory of Rs.25 crore to Delhi-based LT Foods, which holds the basmati rice brand - Dawat.
In a tweet, the fair trade regulator said that it has given its approval to the “acquisition of HUL’s rice business by LT Foods.”
The FMCG major’s decision to sell its rice business is in sync with its strategy to withdraw from non-core operations while continuing to stimulate its growth plan in the core segment of packaged foods, HUL said in statement.
The rice division of HUL, primarily the exports division of rice, under the Rozana and Gold Seal Indus Valley brands, will be transferred to LT Foods Middle East DMCC, a group firm of LT Foods Ltd.
In 1985, HUL had started exporting finest Basmati rice under the Gold Seal Indus Valley brand to several countries in the Europe and Middle East, which was later expanded to other brands and regions.
The brands recorded a turnover of Rs.51 crore, according to audited balance sheet for 2014-15.