FMCG major HUL is exiting its non-core atta and salt businesses and is, therefore, all set to sell its Annapurna and Captain Cook brands to Singapore-based Uma Global Foods for Rs. 60.4 crores. Uma Consumer Products Private Ltd. is a subsidiary of Reactivate Brands International, based in Singapore, and a subsidiary of CSAW Aqbator Pte Ltd. (Singapore). It has signed an agreement for the sale of its atta and salt businesses, carried out under the brands ‘Annapurna’ and ‘Captain Cook’, respectively.
HUL’s resolution to divest is with the determination of exiting non-core categories while continuing to drive its growth agenda in the packaged foods business of dressings, scratch cooking, and soups.
In the financial year 2021–22, both brands had a turnover of Rs. 127 crores and contributed less than 1 percent of HUL’s turnover. Though both brands were launched more than two decades ago, their markets were not doing well.
CSAW is focused on obtaining and scaling up food brands to promote affordable wellness. The deal predicts the transfer of trademarks, copyrights, and other intellectual properties associated with India and several other geographies.
The transaction is subject to customary closing conditions, and HUL will continue to manage the business until the completion of the transaction.
Sanjiv Mehta, CEO & Managing Director of HUL, said, “Given our strategic priorities and portfolio choices, we believe it is in the business’s best interest to sell these brands to Reactivate Brands International, which is well-positioned to unlock their full potential.”
While Ashok Vasudevan, co-founder of Uma Global Foods, said, “We are confident of scaling them up and expanding globally, leveraging the founders’ experience.” These brands fit well with our mission to promote affordable wellness.