Hindustan Unilever: sells Modern Foods to Switz Group

Mumbai / IN. (et) India´s top consumer goods maker, Hindustan Unilever Limited (HUL) is set to sell its subsidiary Modern Foods Industries Limited to the Kolkata (West Bengal) based Switz Group for about one billion Rupees (17,34 million EUR), the Economic Times reported. Modern Foods is a breadmaker HUL had bought from the Indian government for nearly 1,6 billion rupees (27,75 million EUR). The deal is expected to be announced shortly, the paper said, citing people close to the development. According to the paper Switz was in the «final round of talks» with HUL. It said HUL would retain the manufacturing facilities. Modern Foods broke even last year and Hindustan Unilever had tried to sell the business «but failed to find a buyer». HUL purchased 74 percent of Modern Food from the government for 1,26 billion rupees in 2000 as part of the country´s asset-sale program. It bought the remaining 26 percent for 440,7 million rupees two years later. Unilever PLC, based in London and Rotterdam, owns about 51 percent of Hindustan Unilever Limited.