Hindustan Unilever Sets Up Committee To Evaluate Future Of Ice Cream Business
In a strategic move, Hindustan Unilever Ltd. announced on Friday the formation of a dedicated committee to evaluate the future of its ice cream business in light of its British parent's impending global restructuring efforts.
"After due consideration, the board has decided to constitute a committee of independent directors of the company to evaluate in detail the prospects of the company's ice-cream business and to make recommendations to the board on the best way forward, keeping in mind the interests of all stakeholders," HUL said in an exchange filing.
Based on the recommendations, the matter will then be placed for final consideration by the audit committee and the board.
The ice cream division—which includes Kwality Walls, Magnum and Cornetto brands—is a fraction of India's largest consumer goods business. In financial year 2023, ice creams contributed to 3% of HUL's revenue of Rs 58,154 crore. It is not a significant contributor to profitability either, making a case for the company to sell off the business.
Unlike the home and personal-care categories where HUL is a dominant leader, the company trails Amul in the Indian ice-cream market. It also competes with various local and global brands, such as Vadilal, CreamBell, Mother Dairy, Naturals, Havmor and Baskin Robbins.
Parent Unilever has announced its decision to demerge its 7.9 billion Euro ice cream unit by the end of 2025.
HUL Chief Executive Officer Rohit Jawa had earlier said that a definitive decision on the ice cream business is expected by the end of this year.
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