New Delhi: Hindustan Unilever (HUL), the consumer goods giant behind popular ice cream brands like Kwality Wall’s, Cornetto, and Magnum, has announced plans to spin off its ice cream business into a separate publicly listed company. The move, which received in-principle approval from HUL’s Board of Directors, aims to unlock value for shareholders and provide the ice cream business with greater strategic flexibility.
Under the proposed demerger, HUL shareholders will receive shares in the new ice cream company proportional to their existing holdings. The final decision hinges on board and shareholder approval, with a detailed scheme of demerger expected to be reviewed early next year.
This decision follows a strategic review initiated in September, when HUL formed a committee to explore the future of its ice cream business in line with Unilever’s global strategy to separate its ice cream operations. The committee’s recommendation led to the October announcement of the separation.
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HUL believes that creating a standalone ice cream entity will allow for focused management and tailored strategies, enabling the business to reach its full potential. The new company will continue to benefit from the strong brand portfolio and innovation expertise of Unilever’s global ice cream business.
“The demerger will create a leading listed ice cream company in India,” HUL stated, emphasizing the benefits of focused leadership and strategic agility. The company also highlighted the potential for unlocking value for HUL shareholders and ensuring a smooth transition for the business and its employees.
The demerger process is now underway, with HUL’s management authorized to prepare the necessary legal and operational groundwork for the separation.
