HLL Completes Transfer Of Edible Oils And Fats Business

The Board of HLL had granted in-principle approval to the transaction on June 20, 2003. Subsequently, HLL shareholders had approved the transfer through a postal ballot, the results of which were announced on August 1, 2003.

The Edible Oils and Fats business of HLL comprised manufacture and marketing of Vanaspati (Hydrogenated Fats), Refined Oils and Bakery Fats. The transfer of business to Bunge, which is structured as a slump sale/ going concern, include the manufacturing facility at Trichy, Tamil Nadu, together with approximately 300 employees directly relevant to the business with continuity of service and full protection to existing terms and conditions. It also involves assignment of well known brands like Dalda and its various extensions, Masterline, Gold Seal, Silver Seal, Marvo, Biskin and Lily in India and Nepal. HLL would continue to distribute the products of the business through a distribution arrangement with Bunge for a fee. The dealings with stockists and trade will therefore remain unaffected by the proposed transaction.

The divestment of the business is in line with HLL’s focussed business strategy and rationalisation of its existing brand portfolio. Value added processed foods will continue to remain a key focus area for HLL growth and it will seek to build and grow its portfolio of products and categories in this market with power brands such as Knorr-Annapurna, Kissan, etc.