Wadhawan Food buys Hindustan Lever`s Sangam retail business

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Mumbai, Hindustan Lever`s subsidiary Unilever India Exports announced that it has reached an agreement to sell Sangam – a non-store home delivery retail business to Wadhawan Foods Retail (WFRPL) on a slump sale basis with effect from Mar. 31, 2007.

The Sangam business, which was conceptualised in 2001, focused on the direct-to-consumer channel and operated though a dedicated call centre with trained personnel for order procurement and a network of re-distribution centres.

The business operates a dedicated call centre with trained personnel for order procurement and a network of re-distribution agents. The decision for a larger roll out was put on hold in the context of evolving / changing retail scenario in the country.

It was test marketed in Mumbai under the brand Sangam Direct. Apart from catering to the monthly grocery needs through a dial-in facility, the scheme also offered discounts on a wide range of products.

The FMCG company said the decision for a larger rollout of Sangam was put on hold in the context of the changing retail scenario in the country.

“Although Project Sangam has met many of its business milestones successfully, Hindustan Lever believes that it is not in its strategic interest to continue to be present in this format of organised retail,” the company added.

HLL also said the turnover and transaction value is not of material value to the company.

The Wadhawan Food Retail (WFRL) is currently present in Mumbai through its retail food and grocery store `Spinach` which manages about 23 outlets in the city. The flagship, Wadhawan group, has diversified business interests including DHFL, a housing finance company in the private sector.

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