Hindustan Unilever's Ice Cream Business Set for a Spin-Off

Hindustan Unilever Ltd plans to demerge its ice cream business into a separate listed entity, including brands like Kwality Wall's and Magnum. Shareholders will receive proportionate shares in this new venture, pending necessary approvals. This move aims to maximize shareholder value based on independent committee recommendations.

Hindustan Unilever Ltd (HUL), a major player in the FMCG sector, has announced its decision to demerge its ice cream business. This division includes popular brands such as Kwality Wall's, Cornetto, and Magnum, which will now form an independent, publicly listed entity.

The existing shareholders of HUL will be compensated with shares in the new entity, proportional to their current holdings, as per the company's official statement. This development requires several approvals and adherence to relevant legal procedures.

Initiated earlier in October, the valuation process of the ice cream business, which makes up approximately 3% of HUL's total revenue, aims to ensure fairness. The independent committee's recommendations have guided this strategic separation, with the board to decide the restructuring mode by year's end.

(With inputs from agencies.)