Hindustan Unilever Ltd (HUL), a major player in the fast-moving consumer goods (FMCG) sector, has sold its Pureit water purification business to AO Smith’s Indian subsidiary for ₹601 crore ($72 million). This strategic move was announced in a stock exchange filing and will be executed on a slump-sale basis. Launched in Chennai in 2004 and rolled out nationwide in 2008, Pureit offers various water purification solutions, including Copper RO, Pureit Eco Range, Pureit Ultima RO, Pureit UV purifiers, Classic UV Water Purifier, and Marvella UV Water Purifiers. The acquisition is expected to be completed by the end of 2024.

"This move aligns with our strategic focus on core categories. Pureit provides essential water purification solutions to millions of loyal consumers, and I am confident the brand will flourish further under AO Smith’s ownership," said Rohit Jawa, CEO & Managing Director of HUL.

Pureit recorded an annual turnover of ₹293 crore in FY24, representing less than 1 percent of HUL’s total turnover. It is part of HUL’s Home Care business segment. The Indian water purifier market, valued at $1,255.04 million in 2023, is projected to grow at a CAGR of 18.4 percent, reaching $5,738.82 million by 2032.

Kevin J Wheeler, Chairman and CEO of AO Smith, commented, "We believe the addition of Pureit will strengthen our leadership position as a global supplier of premium water treatment products and will double our market penetration in South Asia. The acquisition will also support our corporate strategy by enhancing our premium product portfolio and distribution capabilities."

Despite the promising market growth, the industry faces significant penetration challenges due to affordability issues, particularly in rural areas. High-quality water purifiers with advanced filtration technologies can be expensive, making them inaccessible to many lower-income households. This economic barrier limits the penetration of water purifiers in both rural areas and lower-income urban households, hindering market growth in these segments.

Experts suggest that the government needs to address infrastructural disparities affecting adoption. "Inadequate infrastructure in rural areas poses a restraint on the water purifier market in India. While urban areas may have better access to electricity and water supply, rural regions often lack consistent power supply and piped water systems, presenting challenges for the effective deployment and usage of electric-powered water purifiers," notes a consumer market insight report.