HUL approves demerger of ice-cream biz as separate listed entity

Hindustan Unilever Limited (HUL) has reportedly approved the demerger of its ice cream business as an independent listed entity.

The company announced the news in its regulatory filing, stating that HUL shareholders will get shares in the new entity, proportionate with their existing holdings, said a news report.

HUL’s ice cream business, Kwality Wall's, contributes c.3% to HUL’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,” said the company.

Back in October, HUL said that the 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.