Consumer goods giant Hindustan Unilever Ltd. has decided to divest its entire stake in joint venture Kimberly-Clark Lever Pvt Ltd. to its other partner Kimberly-Clark Cooperation.
The company has signed an agreement for divestment of its 50 per cent shareholding in KCLL, in favour of KCC, the company said in an exchange filing. KCLL is a 22 year old joint venture which is in the baby and feminine care business through its brands Huggies and Kotex.
The company said the decision to divest stake in the partnership is part of the its objective to focus on its core business.
Accordingly, KCLL would now cease to be a joint venture of HUL. The release, however, said the company would work with KCC to ensure smooth transition for the business.
Shares of HUL had fell 2.3 percent ahead of the announcement, while the country's benchmark BSE Sensex closed trade flat.
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