HUL completes its rice exports business sale with LT Foods
The Dollar Business Bureau
Hindustan Unilever Ltd (HUL), India’s leading consumer goods company, said on Friday that it has completed the deal to sellits rice exports division to LT Foods Ltd.
“With respect to the sale of rice export business of HUL carried out primarily under the brands ‘Gold Seal Indus Valley’ and ‘Rozana’, to LT Foods Middle East DMMC, a group Company of LT Foods India Ltd, the company has now completed the said transaction,” the FMCG major said in a filing to BSE.
In another filing, LT Foods Ltd said, “To further enhance the company’s global expansion strategy, the buying of these famous brands of HUL will serve as a significant milestone in the path of LT Foods and support the firm’s position in the Middle East market.”
This year, in March, HUL had signed a deal with LT Foods (owner of brand Daawat) selling its business of rice exports for a value of Rs.25 crore as it decided to leave the non-core business. The said acquisition was approved by the Competition Commission of India (CCI) through its order on May 12, 2016. HUL said the agreement included the transfer of its brands and stock, for a sale consideration of Rs.25 crore.
The rice brands of HUL witnessed Rs.51 crore turnover in the fiscal of 2014-15, according to the audited balance sheet. HUL started exporting premium Basmati rice in 1985 under the Gold Seal Indus Valley brand, to several countries in the Europe and Middle East, which was then extended to other geographies and brands.