AO Smith Acquires HUL’s Pureit Business in India for ₹601 Crore, Expands Water Purification Portfolio

AO Smith, a global corporation, has acquired Hindustan Unilever Ltd’s (HUL) Pureit water purification business in India for ₹601 crore ($72 million). This acquisition is part of a larger deal where AO Smith bought Pureit’s operations in South Asia from Unilever for about $120 million.

Pureit, launched in Chennai in 2004, offers various residential water purification solutions mainly in India. The transaction is expected to be completed by the end of 2024, subject to customary closing conditions. HUL will continue to manage the business until the transaction concludes.

The water purification business of HUL reported a turnover of ₹293 crore in FY24, which is less than 1% of HUL’s total turnover for the period. This move aligns with HUL’s strategy to focus on core categories like beauty, personal care, food, and home care products.

AO Smith India Water Products Pvt. Ltd, a subsidiary of AO Smith Corp. based in the USA, will execute the transaction through a slump sale agreement with HUL. The acquisition of Pureit is seen as enhancing AO Smith’s presence and capabilities in India’s water purification market.

Industry analysts note that the water purification sector is highly competitive, dominated by players like Eureka Forbes and Kent. This acquisition allows AO Smith to strengthen its market position and leverage Pureit’s expertise in water treatment and consumer needs.

Overall, the acquisition underscores AO Smith’s strategic expansion in India’s growing water purifier market, which has shown increased demand post-pandemic despite low household penetration rates.