Mumbai, May 25: Grasim Industries, the A.V. Birla group company, is selling its consumer products business to Kishore Biyani-led Future Consumer Enterprise on a slump sale basis.

Grasim's consumer products division makes face wipes, baby wipes and other products in baby and home care segments under brands that include Kara, Puretta, Handys and Prim. The company, however, said the division had a small contribution to its overall business. Axis Capital acted as the adviser to the transaction, which is expected to be completed in June.

For the fiscal ended March, the division's net sales stood at Rs 9.52 crore against the company's total net sales of Rs 6,252.34 crore on a standalone basis and Rs 32,437.63 crore on a consolidated basis. Initially a textiles player, Grasim had subsequently diversified into viscose staple fibre (VSF) and cement.

These businesses contribute over 90 per cent to its revenues and operating profit.

VSF is a man-made, biodegradable fibre, which is used in apparels, home textiles, dress material, knitted wear and non-woven applications.

Grasim's VSF plants are located at Nagda in Madhya Pradesh, Kharach and Vilayat in Gujarat and Harihar in Karnataka, with an aggregate capacity of 4.98 lakh tonnes.

Meanwhile, this is the second acquisition for the Rs 1,072-crore Future Consumer Enterprise in just over a week.

The company had recently announced that it would invest 51 per cent in MNS Foods Pvt Ltd by way of subscription to equity shares.

The Grasim Industries scrip fell 1.91 per cent to Rs 3,572.60 on the BSE today.