Hindustan Unilever Limited (HUL) today announced that it has signed 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 consideration. 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 transaction is subject to statutory approvals and requisite clearances. It 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.
Sanjiv Mehta, CEO and Managing Director, 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 brand.”
HUL’s bread and bakery business consists of a full range of white and sweet breads, health and wellness breads and value added bakery products such as cakes, muffins, buns, pavs, cream rolls under the well-known ‘Modern’ brand name. The business currently has six own operating manufacturing units and a network of franchisees across India.