- Hindustan Unilever plans to demerge its ice cream business into an independent, publicly listed entity.
- Shareholders will get proportional shares in the new entity, subject to board and shareholder approval.
- The move aims to unlock growth potential in the ice cream market and boost shareholder value.
Hindustan Unilever (HUL) has announced plans to spin off its ice cream business into a separate listed entity. This decision, subject to board and shareholder approval, aims to maximise shareholder value by focusing on the high-growth ice cream market. Shareholders will receive proportional shares in the new company.
HUL highlighted the ice cream business’s unique operational model, requiring specialised cold chain infrastructure, which limits synergy with its core operations. By separating this segment, HUL aims to invest more in core areas like beauty, health, and foods while enabling the ice cream business to grow independently.
HUL’s ice cream segment currently contributes 3% of its revenue. The restructuring follows a 2.4% decline in quarterly net profit, attributed to a one-time tax credit received last year.
