Unilever India Exports (UIEL) today announced that it has reached an agreement to sell Sangam - a non-store home delivery retail business - to Wadhawan Food Retail (WFRL) with effect from March 31, 2007. UIEL is a 100% subsidiary of Hindustan Lever (HLL). The value of the deal was not disclosed.
The Sangam business was conceptualized in 2001 to experiment with the direct-to-consumer channel combining the twin benefits of convenience and value. The idea was to test market it in Mumbai under the brand Sangam Direct before taking a decision to extend it across the country.
The decision for a larger roll-out was put on hold in the context of the evolving retail scenario in the country. An HLL statement said that it was not in its strategic interest to continue to be present in this format of organised retail.
WFRL is currently present in Mumbai through its retail food & grocery store Spinach, and has about 23 outlets in the city. The Wadhawan group has diversified business interests including DHFL, a private sector housing finance company.
Source : Business Standard
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