Hindustan Unilever Ltd will sell its non-core atta brand ‘Annapurna’ and salt business under the brand ‘Captain Cook’ to a Singapore-based company, Reactivate Brands International (RBI) for Rs 604 million (US$7.37 million).
According to a statement by Hindustan Unilever, the decision to divest is in line with the stated intent of exiting non-core categories while continuing to drive its growth agenda in the packaged foods business of dressings, scratch cooking and soups.
Annapurna and Captain Cook were launched over 2 decades ago, yet they achieved revenue of only Rs 1.27 billion (US$15.5 million) in the year ended March 2023, which is less than 1% of the company’s total topline. These brands also did not fare well with increasing competition from rivals Tata Consumer Products Ltd and ITC Ltd, which are leaders in the atta and salt segments in India.
RBI subsidiaries, Uma Global Foods and Uma Consumer Products will receive the brands. RBI is dedicated to purchasing and expanding food brands to support accessible wellness. The sale of all trademarks, copyrights and other intellectual properties as well as any exclusive assets and contracts related to the brands are all included in the deal, which is anticipated to be completed in 3 months.
