FMCG firm Hindustan Unilever (HUL) has completed sale of its bread and bakery business under 'Modern' brand to Everstone Group's Nimman Foods.
"We wish to inform you that post completion of requisite formalities, the company has completed the transaction. Accordingly, the Modern business stands transferred to Modern Food Enterprises Private Ltd," HUL said in a BSE filing.
In September last year, HUL had announced that it will sell its bread and bakery business under 'Modern' brand to Everstone Group's Nimman Foods Pvt Ltd for an undisclosed sum.
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 had informed BSE.
It (transaction) includes sale and transfer of the 'Modern' brand and business on a going concern basis.
HUL and Everstone will work together to secure the necessary approvals to complete the transaction over the next few months. HUL will continue to manage the operations until the completion of the transaction, it said.
Since its acquisition in 2000, HUL has strengthened the Modern business, driven consistent topline growth and significantly improved profitability, HUL CEO and MD Sanjiv Mehta said.
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 brand, he added. 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.