HUL Board approves demerger of Ice Cream business into an independent listed entity

FMCG large Hindustan Unilever Ltd (HUL) connected Monday said its committee has approved the demerger of the crystal pick business, which owns brands specified arsenic Kwality Wall's, Cornetto and Magnum, into an autarkic listed entity.

The existing shareholders of the FMCG large volition person shares successful the caller entity successful proportionality to their shareholding successful HUL, according to a institution statement.

However, the demerger process volition beryllium taxable to the indispensable approvals and procedures to beryllium followed successful accordance with the applicable laws, it added.

Earlier connected October 23, HUL said it has gone for a valuation of the crystal pick business, which contributes astir 3 per cent of the topline, to person a just idea.

It was trying to maximise worth for each shareholders, based connected the recommendations of the Independent Committee, the committee volition find the mode of separation by the extremity of this year.

"The Board considered antithetic modes of separation of the Ice Cream concern and aft owed consideration, with a presumption to maximising worth for each the shareholders, the Board has accorded in-principle support to demerge the business," said HUL.

It has besides authorised HUL's absorption to undertake preparatory steps required for the demerger of the Ice Cream business.
The HUL committee past period decided to demerge the crystal pick business, based connected the proposal of the Independent Committee, which was formed by the FMCG large earlier successful September this year.

The Independent Committee has said the Ice Cream business, has a antithetic operating exemplary including acold concatenation infrastructure, and a chiseled transmission landscape, which limits synergies with the remainder concern of the company.

Earlier this year, HUL's genitor entity, Unilever PLC, had expressed its volition to abstracted its planetary crystal pick concern crossed jurisdictions.

For the fiscal year, which ended successful March 2024, HUL's gross from the merchantability of products was Rs 59,579 crore.