As per latest report it has been indicated that FMCG Hindustan Unilever (HUL) on Friday revealed that it has completed the sale of its rice exports business LT Foods. It has also been stated that with respect to the sale of rice export business of HUL carried out primarily under the brands “Gold Seal Indus Valley” and “Rozana” to LT Foods Middle East DMMC, a group Company of LT Foods India Ltd the company has now completed the said transaction, as HUL narrated in a BSE filing. Further, in this matter, in a separate filing, LT Foods told that to accelerate further, the company’s strategy of global expansion, acquisition of these iconic brands will serve as an important milestone in the journey of LT Foods and to strengthen the company’s position in Middle East market accordingly.
Moreover, in March this year, HUL had signed an agreement with LT Foods, the owner of Daawat brand, for sale of its rice exports business for a consideration of Rs 25 crore as it looks to exit non-core businesses. Further, the Competition Commission of India (CC1) had approved the said acquisition via its order dated May 12, 2016. In this context, the HUL also revealed that the deal envisages transfer of the brands and inventory for a consideration of Rs 25 crore. Meanwhile, the brands registered a turnover of Rs 51 crore as per audited financials for the year 2014-15. It has also been described that the HUL began exporting premium Basmati rice in 1985 under the brand “Gold Seal Indus Valley” to various countries in the Middle East and Europe, which was subsequently extended to other brands and geographies too.