New Delhi: FMCG major Hindustan Unilever Ltd (HUL) has received approval of the Competition Commission of India (CCI) to sell its rice exports business to Delhi-based LT Foods.
The deal, announced in March, allows transfer of the brands and inventory to LT Foods for Rs 25 crore, which owns basmati rice brand Dawat.
In a tweet, the fair trade regulator said it has approved “acquisition of rice business of HUL by LT Foods”.
HUL’s decision to sell the business is in line with its strategy to exit non-core operations while continuing to drive its growth agenda in the core packaged foods segment, the company had said.
The rice export business, primarily carried out under the brands Gold Seal Indus Valley and Rozana, will be sold to LT Foods Middle East DMCC, a group company of LT Foods.
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.
The brands registered a turnover of Rs 51 crore, audited financials for 2014-15 showed.