Hindustan Unilever's board approved the demerger of its ice-cream business into an independent listed entity and incorporation of a wholly owned subsidiary for the proposal.
The firm proposed that the shareholders of HUL will receive shares in the new entity in proportion to their shareholding in HUL, subject to necessary approvals and procedures.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 Unilevers decision to separate their ice cream business. Based on the recommendation of this committee, the board had announced the separation of the business in October 2024.
The FMCG major stated, Ice cream is a high-growth business with iconic brands such as Kwality Walls, 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 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 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 creams growth journey. Demerger will also facilitate a smoother transition for business as well as our people.
Hindustan Unilever is India's largest fast moving consumer goods company. The company reported 3.86% decline in standalone net profit to Rs 2,612 crore on 1.94% increase in revenue from operations to Rs 15,319 crore in Q2 FY25 over Q2 FY24.
The scrip declined 0.26% to Rs 2,476.80 on the BSE.
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