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Hindustan Unilever has completed the sale of its rice exports business to LT Foods.
“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,” HUL said in a BSE filing.
In a separate filing, LT Foods said: “To further accelerate 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 strengthen company’s position in Middle East market.“
In March this year, HUL had signed an agreement with LT Foods (owner of Daawat brand) for the sale of its rice exports business for a consideration of Rs 25 crore as it looks to exit non-core businesses.
The Competition Commission of India (CC1) had approved the acquisition via its order dated May 12, 2016.
HUL said the deal envisages transfer of the brands and inventory for a consideration of Rs 25 crore.
The brands registered a turnover of Rs 51 crore as per audited financials for the year 2014-15.
HUL began exporting premium Basmati rice in 1985 under the brand Gold Seal Indus Valley to various countries in West Asia and Europe, which was subsequently extended to other brands and geographies.
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