Leading spice maker MDH Limited has refuted the reports of a possible sale of its business to FMCG major Hindustan Unilever Limited (HUL).
The reports suggested that MDH promoters are in talks to sell their business to HUL.
Terming such reports as "completely false, fabricated and baseless", MDH in a message posted on its official Twitter account urged people "not to believe such rumours".
"MDH Pvt Ltd is a legacy, which Mahashay Chimi Lal Ji and Mahashay Dharampal Ji nurtured all their lives, and we are committed to taking that legacy forward with all our heart," said a message from MDH Chairman Rajeev Gulati.
HUL, which owns popular household brands such as - Lux, Lifebuoy, Surf Excel, Rin, Wheel, Ponds - declined to comments on the issue.
"We do not comment on market speculation," said an HUL spokesperson.
A report had claimed that HUL is in talks with the Delhi-based Mahashian Di Hatti Private Limited (MDH) to buy a majority stake.
It had further claimed that the value of this deal may be anywhere between Rs 10,000 to Rs 15,000 crore. However, MDH declined any such considerations.
Recently several leading FMCG players such as ITC and Tata Consumers Private Limited have increased their play into the spices segment, which is considered to be a high margin business.
In 2020, ITC had acquired Sunrise Foods - a prominent player in the spice market in Eastern India, in a Rs 2,150 crore deal.
Dharampal Gulati, who had brought the family company from Sialkot in Pakistan to India after Partition, and turned the business empire worth over a thousand crores, passed away in December 2020.
After that, the business was passed on to the next generation.
MDH has a range of over 60 products. Its spices are also exported to several countries.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)