The HUL Board has Approved the Separation of its Ice Cream Division

The HUL board has approved the separation of its ice cream business into a standalone publicly traded company and the establishment of a wholly owned subsidiary to facilitate this initiative.

The company suggested that HUL shareholders will be allocated shares in the new entity based on their existing shareholding in HUL, pending the required approvals and processes.

In September, the board established a committee of independent directors to assess the future and potential of the ice cream business following Unilever’s decision to divest this segment. Acting on the committee’s recommendations, the board announced the separation of the ice cream business in October 2024.

The FMCG giant announced that the ice cream sector is experiencing significant growth, featuring well-known brands like Kwality Walls, Cornetto, and Magnum. This sector operates within an appealing category and achieves mid to high single-digit profitability.

By demerging the ice cream business, a prominent publicly traded ice cream company will be established in India. This new entity will benefit from dedicated management and enhanced flexibility to implement strategies tailored to its unique business model and market conditions, thereby maximizing its potential.

Additionally, the business will maintain access to the portfolio, brand, and innovation expertise of the world’s largest ice cream company, allowing it to remain competitive in the market.

Establishing a separate publicly traded entity will provide HUL shareholders with fair value and the option to continue investing in the growth of the ice cream sector. The demerger will also support a more seamless transition for both the business and our employees.

HUL will provide the required disclosures in compliance with the SEBI Listing Regulations and other relevant laws, following the Board’s review and approval of the matter.

To get regular Food Industry updates, feel free to join our WhatsApp group: Joining link