The country’s largest consumer goods company, Hindustan Unilever, is looking at a potential sale of its Pureit water purifier business, informed sources have told FE, in an attempt to focus on its core FMCG businesses. The company has held initial talks with a few prospective buyers, persons in the know said, with discussions being exploratory in nature at this stage.
Among likely buyers tapped include private equity players and global funds who have marked their presence in the category. Existing investor in the space include PE firm Advent International, which acquired a controlling stake in Eureka Forbes in 2021 from its erstwhile owner, the Shapoorji Pallonji Group, at an enterprise value of Rs 4,400 crore. An HUL spokesperson said the company has no comments to offer in response to a query.
The talks for the sale of the India Pureit business come amid parent Unilever initiating the sale of its majority stake in Qinyuan Group, a Chinese maker of water purification equipment which it acquired in 2014, according to report by Bloomberg last week. The proposed sale could value Qinyuan at about $300 million, the report stated. HUL first entered the water purifier segment 20 years ago in 2004 with an entry-level gravity water purifier, taking on established brands such as Eureka Forbes and Kent. In 2011, the company launched its range of RO (reverse osmosis) water purifiers.
Today, the FMCG major sells a wide range of advanced RO (reverse osmosis) and UV (ultraviolet) water purifiers.While the company does not provide a break-up of Pureit sales in its annual reports, analysts peg the sales figure at Rs 200-250 crore in terms of value. It remains a small part of HUL’s overall sales, according to analysts.
At an overall level, the water purifier market in India is pegged at Rs 8,000 crore, growing at 10% per annum. Eureka Forbes remains the market leader with its Aquaguard brand of water purifiers, estimated to have a share of nearly 40%, according to industry experts. Kent, another popular brand, is estimated to have a share of around 30-35%. Kent has one of the most aggressive marketing campaign, led by its brand ambassador Hema Malini, among the water purifier brands.