Hindustan Unilever Limited (HUL) has signed an agreement for the sale of its Pureit business in India. The business is being sold to A. O. Smith, a leading global water technology company, for Rs 601 crore.
Rohit Jawa, CEO and Managing Director 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 A. O. Smith.”
Parag Kulkarni, President of A. O. Smith India Water Products, said,“The Pureit brand, known for innovative water purification products, strong brand recognition and dedication to customer service, complements A. O. Smith’s geographic and channel presence. The Pureit team’s deep understanding of consumer needs and water treatment expertise adds tremendous strength to A. O. Smith in India, and we look forward to welcoming the Pureit team to the A. O. Smith family.”
“The Board of Directors at their meeting held on 15th July, 2024, has approved the sale and divestment of company’s Water Purification business carried under the brand ‘Pureit’ including the trademarks, copyrights and other intellectual properties and identified assets and contracts associated with the business, as a going concern on slump sale basis, to A.O. Smith India Water Products Private Limited,” the company said in a regulatory filing.
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 nationwide in 2008. It entered the Electric Water purification segment in 2011 and further strengthened its portfolio. Pureit continued to launch disruptive consumer-centric devices such as Copper RO – World’s first RO with patented Copper Charge technology in 2019. Later in 2022 and 2023, Pureit launched new platforms with FiltraPower and DURAViva technologies.
Reportedly, the FY24 turnover of the water purification business, which is part of its overall home care arm, was recorded at Rs 293 crore– less than one percent of HUL’s turnover.