HUL and Everstone will work together to secure the necessary approvals to complete the transaction over the next few months.
Hindustan Unilever Limited (HUL) on Tuesday announced an agreement for the sale and transfer of its bread and bakery business under the brand ‘Modern’ to Nimman Foods Private Limited, an investee company of the Everstone Group, for an undisclosed amount.
“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 company said in a BSE filing.
Sanjiv Mehta, CEO & Managing Director of HUL said, “Modern is an iconic brand which has been delighting consumers over the years through its range of high quality bread and value added bakery products. Since its acquisition in 2000, HUL has strengthened the Modern business, driven consistent topline growth and significantly improved profitability. Having turned around the business and built a sustainable growth model, we believe that the sale to Everstone will unlock the full potential of the Modern bread”.
The business includes products such as cakes, muffins, buns, pavs and cream rolls. It has six manufacturing units and a network of franchisees across India.