Unilever’s India Unit to Spin Off Ice Cream Business into Independent Entity
Source: DairyNews.today
Hindustan Unilever Limited (HUL) has announced plans to demerge its ice cream business into an independent, listed entity, pending shareholder and regulatory approvals.
The decision was made following an in-principle approval by HUL’s board of directors on November 25. Under the proposed scheme, HUL shareholders will receive shares in the new entity, proportional to their existing holdings. The demerger is aimed at unlocking shareholder value and providing the ice cream business with greater operational independence to leverage its growth potential.
The move follows an evaluation led by a committee of independent directors, formed in September 2024, after Unilever’s global decision to separate its ice cream operations. HUL confirmed its intent to proceed with the separation in October, culminating in the formal approval for the demerger.
HUL’s ice cream division, which includes popular brands like Kwality Wall’s, Cornetto, and Magnum, operates in a high-growth market with mid to high single-digit profitability. The demerger is expected to provide the ice cream business with "focused management" and "greater flexibility" to enhance its operations and market strategy.
The move follows an evaluation led by a committee of independent directors, formed in September 2024, after Unilever’s global decision to separate its ice cream operations. HUL confirmed its intent to proceed with the separation in October, culminating in the formal approval for the demerger.
HUL’s ice cream division, which includes popular brands like Kwality Wall’s, Cornetto, and Magnum, operates in a high-growth market with mid to high single-digit profitability. The demerger is expected to provide the ice cream business with "focused management" and "greater flexibility" to enhance its operations and market strategy.
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