Hindustan Unilever Limited (HUL) is set to spin off its Ice Cream division into an independent listed company. The decision, which has received in-principle approval from HUL’s Board of Directors, aims to enhance shareholder value and awaits regulatory and legal clearances.
HUL shareholders will be allocated shares in the new entity proportionate to their existing holdings. The final demerger plan will require Board and shareholder consent, with the detailed scheme expected to be submitted early next year.
The move follows Unilever’s global decision to separate its Ice Cream business. In September 2024, HUL’s Board formed an Independent Directors Committee to assess the prospects of this division. Their recommendations led to the announcement of the demerger in October 2024.
This high-potential business, which includes popular brands like Kwality Wall’s, Cornetto, and Magnum, boasts steady growth and profitability. Establishing it as a standalone company will allow for a dedicated management team, greater operational focus, and enhanced flexibility in implementing tailored strategies. The entity will also benefit from Unilever’s global expertise in branding, innovation, and portfolio management.
The demerger is expected to unlock value for HUL shareholders, offering them an opportunity to participate directly in the Ice Cream business’s growth trajectory. It will also ensure a seamless transition for employees and the business itself.
HUL’s management has been tasked with preparing for the demerger, including drafting a scheme of arrangement. Further updates will be disclosed in compliance with SEBI regulations and other legal requirements after receiving necessary approvals.