Hindustan Unilever Limited has sold off its rice exports business to LT Foods Middle East DMCC, a group company of LT Foods Limited. HUL’s rice exports business was primarily carried out under the brands like Gold Seal Indus Valley and Rozana.
HUL’s decision to divest is in line with its strategy to exit non-core businesses, while continuing to drive its growth agenda in the core packaged foods business.
The deal envisages transfer of the brands and inventory for a consideration of Rs 25 crore, subject to adjustments on closing. The transaction is subject to fulfillment of certain conditions and the parties will work together to complete this over the next few months. HUL will continue to manage the business until the completion of the transaction.
In 1985, HUL started exporting premium Basmati rice under the brand Gold Seal Indus Valley to various countries in the Middle east and Europe. It was subsequently extended to other brands and geographies. The rice brands have a operating business across 21 categories. Gold Seal Indus Valley Basmati Rice falls under the category of premium segment whereas Rozana Branded Basmati Rice operates in mid segment.