Mumbai, Sept. 8: Hindustan Unilever (HUL) today said it has sold its bread and bakery business under the "Modern" brand to Everstone Group for an undisclosed sum. The sale is in line with HUL's strategy to exit non-core businesses.

"It (transaction) includes sale and transfer of the 'Modern' brand and business on a going concern basis. HUL and Everstone will work together to secure the necessary approvals over the next few months. HUL will continue to manage the operations until the completion of the transaction," HUL said in a statement.

The bread and bakery business includes products such as cakes, muffins, buns, pavs and cream rolls. It has six manufacturing units and a network of franchisees.

HUL had acquired Modern in 2000 under a divestment programme by the then NDA government. The acquisition was then seen as a strategic extension of its wheat business. Later in 2002, HUL acquired the government's rump stake.

"Since its acquisition in 2000, HUL has strengthened the Modern business, driven consistent topline growth and significantly improved profitability... we believe the sale to Everstone will unlock the full potential of the brand," HUL chief executive officer and MD Sanjiv Mehta said.

Co-founded by Sameer Sain and Atul Kapur, the Everstone group is a private equity and real estate investor with over $3 billion in assets under management. It's focus regions are India and South East Asia. The group also has investments in Burger King India and Domino's Indonesia.

"Everstone is committed to making significant investments in not only unlocking the brand's true potential, but also managing it as an independent company," Sain said.

HUL had reported a 5 per cent increase in sales in the first quarter of this fiscal, with profits almost the same as a year ago.