Makes strategic move to focus on core categories while strengthening AO Smith’s market presence in India
Hindustan Unilever Limited (HUL) has announced the sale of its water purification business, Pureit, to global water technology company AO Smith for Rs 601 crore ($72 million). The transaction, expected to be completed within three months, marks a significant strategic shift for HUL as it sharpens its focus on core categories.
“This move aligns 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,” said Rohit Jawa, CEO and MD, HUL. In FY24, Pureit’s turnover was Rs 293 crore, accounting for less than 1 per cent of HUL’s total turnover.
Kevin J. Wheeler emphasised that Pureit’s strong brand recognition and innovative water purification products complement A.O. Smith’s existing presence. “We believe the addition of Pureit will strengthen our leadership position as a global supplier of premium water treatment products and will double our market penetration in South Asia. The acquisition will also support our corporate strategy by enhancing our premium product portfolio and distribution capabilities,”
Pureit first launched in Chennai in 2004 with the introduction of Pureit Classic and entered the electric water purification segment in 2011. The acquisition will enhance AO Smith’s premium product portfolio and distribution capabilities, aligning with their corporate strategy.
Meanwhile, HUL’s board of directors is set to meet on 23 July to approve Q1FY25 earnings results. In the preceding quarter (Q4FY24), HUL reported a 6 per cent drop in standalone net profit to Rs 2,406 crore, with revenue from operations slightly up at Rs 14,693 crore.
