HUL follows parent Unilever to demerge ice cream business

Following its UK parent’s decision in March to spin off its ice cream unit, home to Magnum and Ben & Jerry’s brands, packaged consumer goods firm Hindustan Unilever Ltd has got the board’s approval to demerge and list its ice cream business.

Popular ice cream brands like Kwality Wall’s, Cornetto, and Magnum, part of HUL’s ice cream business, will be part of the independent listed company.

The board weighed different modes of separation of the ice cream business and after due consideration, with a view to maximize value for all the shareholders, it has accorded in-principle approval to
demerge the business, the company informed the exchanges.

In September, the board had constituted a committee of independent directors of the company to evaluate the prospects and way forward for the business pursuant to Unilever’s decision to separate their Ice
Cream business.

Based on the recommendation of the committee, the board had announced the separation of the business in October.

The demerger of ice cream business will create a leading listed ice cream company in India, which will have a focused management with greater flexibility to deploy strategies suited to its distinctive business model and market dynamics, the company said.

“A separate listed entity will unlock fair value for HUL shareholders and give them the flexibility to stay invested in ice cream’s growth journey. Demerger will also facilitate a smoother transition for business as well as our people,” it added.