FMCG major HUL today said it has signed an agreement to divest 50 per cent stake in joint venture Kimberly-Clark Lever Pvt Ltd (KCLL) to its partner Kimberly-Clark Cooperation(KCC).
KCLL, which is into baby and feminine care business through its brand Huggies and Kotex, is a 22-year old 50:50 joint venture between Hindustan Unilever Ltd (HUL) and US- based KCC.
The company has signed an agreement for divestment of its 50 per cent shareholding in KCLL, in favour of KCC, HUL said in a BSE filing.
Accordingly, KCLL would cease to be a joint venture of HUL.
The company said the decision to divest its stake in the partnership is part of the company’s objective to focus on its core business.
It however said the company would work with KCC to ensure smooth transition for the business.
HUL and KCC had a partnership for over two decades and built a foundation for the baby and child care and feminine care business in India under the brand Huggies and Kotex, respectively.
HUL had formed the JV with KCC in 1995.