FMCG giant Hindustan Unilever Ltd (HUL) on Wednesday announced the demerger of its ice cream business, saying it has been independently evaluated for fairness. HUL’s ice cream business includes brands like Quality Walls, Cornetto and Magnum.
HUL’s board of directors meeting on Wednesday decided to spin off the ice cream business. The move is based on the recommendation of an independent committee that was formed in September this year.
The committee has said that the ice cream business, which accounts for three per cent of the company’s turnover, has a separate operating model that limits synergy with the company’s other businesses. This model includes cold storage structures and a separate channel scenario.
The company’s chief financial officer, Ritesh Tiwari said during the announcement of the quarterly results that HUL has independently evaluated the ice cream business. However, he did not share the details related to it. He said the ice cream business would be divested through a ‘competitive process’. This will help the company to focus on its core business and strengthen itself in segments like beauty, food, health, and wellness.