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% 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 a smooth transition of 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.
The stock of HUL closed on Friday at Rs 1,175.15 per share, down by Rs 28.55 or 2.37% on the BSE.