HUL separates its Ice Cream business; mode of separation to be decided by end of 2024
The Board’s decision to separate is in line with the recommendation made by the Independent Committee following a comprehensive review of the Business.
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The Board of Directors of Hindustan Unilever Limited (HUL) has announced its decision to separate the Ice Cream business. As per the company, the Board had constituted a committee of Independent Directors of the Company to evaluate the way forward for the Business.
With the aim of maximising value for all shareholders, the Board, based on the recommendations of the Independent Committee, will determine the mode of separation by the end of this year.
The Board’s decision to separate is in line with the recommendation made by the Independent Committee following a comprehensive review of the Business. The Independent Committee considered some key aspects in arriving at its decision to separate the Business.
According to the board, Ice Cream is a high-growth category that needs significant investments to realise its full potential. The board further added that given Unilever owns the trademarks and know-how, local capabilities will need to be developed to continue running the Business. Ice Cream has a different operating model including cold chain infrastructure and a distinct channel landscape, which limits synergies with rest of HUL.
Moreover, the portfolio restructuring will enable HUL to sharpen focus on the core business and further strengthen its play in trending demand spaces such as Beauty, Foods, Health and Wellbeing. It will also enable the Ice Cream business to operate with greater flexibility and focus.
The Company shall make necessary disclosures in accordance with the SEBI Listing Regulations and other applicable laws, post consideration of the matter by the Board.
