Hindustan Unilever Ltd (HUL) is selling its Modern Foods unit to Middle East-based Switz Group for about 1 bln rupees, local business daily The Economic Times said quoting sources close to the deal.
The Middle East-based Switz Group is owned by Mumbais Khorakiwala family, which also owns Indian pharmaceutical firm Wockhardt Ltd, retail chain Akbarallys and bakery chain Monginis.
Hindustan Lever, as HUL was known earlier, had bought Modern Foods India Ltd in two phases — buying a 74 pct stake in January 2000 and the remainder in November 2002 — for a total value of about 1.5 bln rupees and had been struggling with the bakery unit because of high costs and an unmanageable work force, the report said.
HULs official spokesperson refused to comment on the deal and Taizoon Khorakiwala was unavailable for comment, the report said. It, however, cited senior Switz officials as saying they were in final rounds of talks with HUL.
Source: Hemscott