Hindustan Unilever to Demerge Ice Cream Division for Focused Growth

Hindustan Unilever Ltd announced the separation of its ice cream business, which includes brands like Kwality Wall's and Magnum. An independent valuation was conducted to aid the demerger, aiming to maximize shareholder value and enhance focus on core business areas such as Beauty and Foods.

Hindustan Unilever Ltd (HUL) has decided to separate its ice cream business, which includes well-known brands such as Kwality Wall's, Cornetto, and Magnum. The decision follows an independent valuation conducted to assess the business's potential and limitations within HUL's broader operations.

The company's board approved the demerger, based on recommendations from an independent committee established in September. This move aligns with HUL's strategy to sharpen its focus on core business sectors, including Beauty, Foods, and Health, while allowing the ice cream division greater operational flexibility.

Ritesh Tiwari, HUL's CFO, confirmed that the independent valuation was a key consideration for this strategic shift. The board aims to finalize the separation process by the end of this year as HUL seeks to align its portfolio with the dynamic demands of the market.

(With inputs from agencies.)