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HUL decides to separate its ice cream business
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Thursday, 24 October, 2024, 13 : 00 PM [IST]
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Our Bureau, Mumbai
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The board of directors of Hindustan Unilever Limited held a meeting, and announced its decision to separate the ice cream business.
The board had constituted a committee of independent directors of the company to evaluate the way forward for the ice cream business. The board’s decision to separate is in line with the recommendation made by the independent committee following a comprehensive review of the ice cream business.
The independent committee considered the following key aspects in arriving at its decision to separate the ice cream business:
- Ice cream, which contributes c.3% to the company’s turnover, is a high-growth category that needs significant investments to realise its full potential.
- Given Unilever owns the trademarks and know-how and has announced the separation of its ice cream business, local capabilities will need to be developed to continue running the business.
- Ice cream has a different operating model including cold chain infrastructure, and a distinct channel landscape, which limits synergies with rest of the company.
This portfolio restructuring will enable the company to sharpen focus on the core business and further strengthen its play in trending demand spaces such as Beauty, Foods, Health and Wellbeing. It will also enable the ice cream business to operate with greater flexibility and focus. With the aim of maximising value for all shareholders, the Board, based on the recommendations of the independent committee, will determine the mode of separation by the end of this year.
The company shall make necessary disclosures in accordance with the SEBI Listing Regulations and other applicable laws, post consideration of the matter by the board.
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