Hindustan Unilever Sells Pureit Water Business to AO Smith
Pure It Water business 
In a strategic move to focus on its core business areas, Hindustan Unilever Limited (HUL) has divested its Pureit water purification business in India to AO Smith, a leading water technology company, for Rs 601 crore (US$72 million). This deal signifies HUL’s ongoing effort to streamline its portfolio, aligning with previous divestments of non-core brands like Annapurna and Captain Cook.
Rationale Behind the Sale
Rohit Jawa, CEO and Managing Director of HUL, explained the sale as a strategic decision to sharpen the company’s focus on its core categories. He expressed confidence that Pureit, a brand trusted by millions of consumers, will flourish under AO Smith’s ownership.
Financial Implications
Pureit’s commitment to HUL’s general income was negligible, producing Rs 293 crore in the 2023-24 monetary year, addressing under 1% of HUL’s all out pay. The exchange is dependent upon standard shutting techniques, with HUL holding the executives control of the business until the handover is finished. AO Smith expects insignificant effect on their first-year profit after the procurement.
Strengthening Market Leadership: AO Smith’s Perspective
Kevin J Wheeler, Executive and President of A. O. Smith Partnership, sees the obtaining of Pureit as a huge lift to their worldwide administrative role in water treatment arrangements. He anticipates that it should twofold their market entrance in South Asia while upgrading their superior item portfolio and circulation organization.
Aligning Strengths: A Promising Future for Pureit
Parag Kulkarni, Leader of A. O. Smith India Water Items, featured the essential fit between Pureit’s memorability, client center, and creative product offering with AO Smith’s laid out market presence and dispersion channels. He accepts Pureit’s group aptitude will additionally fortify AO Smith’s situation in India.
Pureit’s Legacy: Innovation and Growth
Launched in 2004 with the introduction of the Pureit Classic, a user-friendly gravity-based purifier, the brand has played a vital role in ensuring accessible and safe drinking water for millions of Indian households. Over the years, Pureit expanded its offerings to include electric purifiers (2011), Copper RO technology (2019), and cutting-edge advancements like FiltraPower and DURAViva (2022 and 2023).
By joining forces with AO Smith, Pureit gains access to a broader global reach and advanced technological expertise, paving the way for continued market growth and innovative product development.