Unilever India Exports, a 100% subsidiary of Hindustan Lever, will sell is direct selling business Sangam Direct to Wadhawan Food Retail, for an undisclosed sum. Sangam Direct is a non-store home delivery retail business, while Wadhawan Food Retail operates the Spinach chain of food and grocery stores.
The Sangam business was conceptualized by Hindustan Lever 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 since Hindustan Lever felt it was not in its strategic interest to continue to be present in this format of organized retail.
Wadhawan Food Retail, is currently present in Mumbai through Spinach, which has about 23 outlets in the city. The Wadhawan Group has diversified business interests including Dewan Housing Finance Limited, a private sector housing finance company.
Read the Business Standard article.
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Wadhawan Food Retail close to acquiring HLL’s Sangam Direct
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