 headquarters in Mumbai)
A pedestrian walks past the Hindustan Unilever Limited (HUL) headquarters in Mumbai.
Credit: Reuters Photo
Bengaluru: The Board of Directors of fast-moving consumer goods (FMCG) major Hindustan Unilever Limited (HUL) at its meeting on Monday accorded in-principle approval to demerge the ice cream business into an independent listed entity.
HUL’s ice cream brands include Kwality Wall’s, Cornetto, and Magnum. According to the company, the ice cream business is mid- to high-single-digit profitable. In the financial year 2022-23, the brands together accounted for around 3 percent of HUL’s total revenue of Rs 59,144 crores.
Subject to the necessary approvals and procedures to be followed in accordance with the applicable laws, it is proposed that the shareholders of HUL will receive shares in the new entity in proportion to their shareholding in HUL.
The decision to demerge is also subject to approval by the board and shareholders early next year. The board is considering different modes of separation of the ice cream business with the aim of maximising value for shareholders.
In September, the board had constituted a committee of independent directors of the company to evaluate the prospects for the ice cream business pursuant to HUL’s decision to separate the business.
The board had announced the separation of the business in October 2024. It has authorised HUL’s management to undertake preparatory steps required for the potential demerger including the drawing up of the scheme of arrangement.
HUL’s parent Unilever’s global ice cream business operates five of the top ice cream brands, including Wall’s, Ben & Jerry’s, and Magnum.
In 2023, the ice cream business saw a turnover of €7.9 billion for the company. In March this year, Unilever had decided to separate its ice cream business.