New Delhi: Hindustan Unilever Limited (HUL), a leading fast-moving consumer goods company, has announced plans to separate its ice cream business from the parent company. The decision comes after a thorough review by an independent committee of the company’s board of directors.
The ice cream business, which currently contributes 3% to HUL’s overall revenue, is seen as a high-growth category that requires significant investments to reach its full potential. Given that Unilever, HUL’s parent company, has also decided to separate its ice cream business globally, the Indian operation would need to develop local capabilities to continue its operations.
The independent committee noted that the ice cream business operates with a distinct channel landscape and requires a separate cold chain infrastructure, limiting synergies with HUL’s other businesses. By spinning off the ice cream business, HUL aims to sharpen its focus on its core areas, such as beauty, foods, health, and wellbeing.
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The company will determine the mode of separation, such as a demerger or a sale, by the end of the year. The decision will be made based on the recommendations of the independent committee and with the aim of maximizing value for all shareholders.
HUL will make necessary disclosures in accordance with the Securities and Exchange Board of India (SEBI) Listing Regulations and other applicable laws.
