The Board of Directors of Hindustan Unilever Limited at its meeting held today has accorded in-principle approval to demerge the Ice Cream business into an independent listed entity. 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 subject to approval of the Board and the shareholders to the scheme of demerger to be placed before the Board early next year. The Board considered different modes of separation of the Ice Cream business and after due consideration, with a view to maximise value for all the shareholders, the Board has accorded in-principle approval to demerge the business.
In September, the Board had constituted a committee of Independent Directors of the Company to evaluate the prospects and way forward for the Ice Cream business pursuant to Unilever’s decision to separate their Ice Cream business. Based on the recommendation of the Independent Committee, the Board had announced the separation of the business in October 2024.
Ice Cream is a high-growth business with iconic brands such as “Kwality Wall’s”, “Cornetto” and “Magnum”, operating in an attractive category, and has mid to high single digit profitability. The demerger of Ice Cream business will create a leading1 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 thus realising its full potential.
Further, the business will continue to be equipped with the portfolio, brand and innovation expertise from the largest global Ice Cream business enabling it to keep winning in the marketplace. 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.
The Board has authorised HUL’s management to undertake preparatory steps required for the potential demerger of the Ice Cream business including the drawing up of the scheme of arrangement.
HUL shall make necessary disclosures in accordance with the SEBI Listing Regulations and other applicable laws, post consideration and approval of the matter by the Board.
