HUL forms independent panel to review ice cream business post Unilever’s spin-off plans

Hindustan Unilever Ltd (HUL) is reviewing the future of its ice cream division, setting up a committee of independent directors to assess the prospects of the business, following its parent company Unilever’s move to separate its ice cream operations across markets.

In a statement released Friday, HUL said the committee will provide recommendations on the best path forward for the ice cream business, factoring in the interests of all stakeholders. The final decision will be made by the audit committee and the board, based on the independent committee’s advice.

Necessary announcements and disclosures in accordance with the Securities and Exchange Board of India's listing regulations and other applicable laws will follow the board’s consideration, the company added.

This move aligns with Unilever’s earlier announcement to demerge its 7.9 billion euro global ice cream unit by the end of 2025. The consumer goods giant cited the distinct characteristics of the ice cream business—such as its unique supply chain, seasonal fluctuations, and capital-intensive nature—as reasons for the separation. 

Read this | How HUL's Rohit Jawa plans to beat India's clock speed

“The Unilever board is confident that the future growth potential of Ice Cream will be better delivered under a different ownership structure,” Unilever had said in March, adding that the spin-off would create a leading standalone business in an attractive category.

In India, HUL’s ice cream brands, which include Kwality Wall’s, Cornetto, and Magnum, accounted for less than 3% of its total revenue in FY23, with overall revenue from operations reaching ₹59,144 crore. 

Also read | HUL: Gradually improving outlook to test investors’ patience

“As far as the Indian ice cream business is concerned, we are evaluating the various options in light of this (Unilever's) announcement,” HUL has said in a statement earlier this year.