HUL announces sale of water purification business, Pureit, to AO Smith for Rs 601 crore 

Hindustan Unilever Limited (HUL) on July 15 announced that it will sell its Pureit business in India to AO Smith, a leading global water technology company, for Rs 601 crore ($72 million). The company announced the sale through a disclosure to the stock exchanges today. 

Rohit Jawa, CEO & MD of HUL, said, “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.” 

The FY24 turnover of the water purification business -- part of its overall home care arm -- was recorded at Rs 293 crore, which is less than one percent of HUL’s turnover.  

Parag Kulkarni, president of AO Smith India Water Products Private Limited, said: “The Pureit brand, known for innovative water purification products, strong brand recognition and dedication to customer service, complements AO Smith’s geographic and channel presence. The Pureit team’s deep understanding of consumer needs and water treatment expertise adds tremendous strength to AO Smith in India, and we look forward to welcoming the Pureit team to the AO Smith family.” 

AO Smith India Water Products Private Limited is the Buyer entity involved in the transaction. It is a subsidiary of AO Smith Corporation, USA. 

There will be no change in the shareholding pattern of HUL pursuant to the proposed slump sale, HUL said in its disclosure. The completion of the transaction is expected within an estimated period of three months, subject to any extension as per terms of the transaction documents, it added. 

The transaction is subject to customary closing conditions, and HUL will continue to manage the business until the completion of the transaction.

Pureit was first launched in Chennai in 2004 with the introduction of Pureit Classic, a first-of-its-kind
gravity-based water purifier to provide accessible and safe drinking water to millions. It was launched
across the country in 2008. It entered the electric water purification segment in 2011. 

Meanwhile, the board of directors of HUL is scheduled to meet on July 23 to consider and approve unaudited standalone and consolidated financial results for the quarter ended June 30.

HUL reported a 6 percent drop in its standalone net profit at Rs 2,406 crore for Q4FY24. The same stood at Rs 2,552 crore in the last year quarter. Revenue from operations in the reporting period rose marginally to Rs 14,693 crore, compared with Rs 14,638 crore in the corresponding period of last year.