- Nov 27, 2024
- 1 min read
Hindustan Unilever Limited (HUL) has announced plans to demerge its ice cream division into an independent listed entity.
The board of directors granted in-principle approval during its meeting held on Monday, 25 November, with the final decision pending shareholder and regulatory approvals, alongside other procedural requirements.
Under the proposed scheme, HUL shareholders will receive shares in the new entity proportional to their existing holdings. The demerger aims to unlock shareholder value and provide the ice cream business with operational independence to capitalise on its growth potential.
The decision to demerge follows an evaluation led by a committee of independent directors, formed in September 2024, after Unilever’s announcement to separate its global ice cream operations. In October, HUL confirmed its intent to proceed with the separation, culminating in this formal approval to pursue a demerger.
HUL’s ice cream division, which includes brands such as Kwality Wall’s, Cornetto and Magnum, operates in a high-growth segment with mid to high single-digit profitability. By becoming a standalone listed company, the ice cream business will benefit from 'focused management' and 'greater flexibility' to optimise its operations and market strategies.
