HUL to demerge ice cream business into independent listed entity

The move aims to create a leading standalone ice cream company in India

Hindustan Unilever Limited (HUL) announced that its Board of Directors has granted in-principle approval to demerge the Ice Cream business into a separate listed entity. The move aims to create a leading standalone ice cream company in India, allowing for focused management and tailored strategies to unlock its full growth potential.

Under the proposed plan, HUL shareholders will receive shares in the new entity proportional to their shareholding in HUL. This decision is subject to regulatory approvals and will be presented for final approval to the Board and shareholders early next year.

The demerger aligns with Unilever’s global strategy to separate its Ice Cream business. In September 2024, a committee of Independent Directors was constituted to evaluate options for the business. Based on their recommendation, the Board approved the separation in October.

The new entity will benefit from Unilever’s global expertise in brands, portfolio management, and innovation, enabling it to remain competitive and capture market opportunities. This structure is expected to maximize value for shareholders while ensuring a smooth transition for the business and its workforce.

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