Hindustan Unilever has clarified that its foods business remains a core part of its growth strategy and is not up for sale, even as parent company Unilever confirmed discussions with McCormick & Company over a possible deal involving the global foods portfolio.
In a regulatory filing, HUL said it is not engaged in any talks to divest its foods division, stressing that the segment continues to be a key pillar of the company’s operations in India.
Unilever acknowledged that it has received an offer and is in discussions with McCormick, but added that there is no certainty that a transaction will take place. The company noted that its food business remains strategically important and financially strong.
In India, HUL’s food portfolio — which includes brands such as Knorr and Horlicks — generates more than ₹15,000 crore in annual revenue and contributes about 22% of the company’s total sales. The division also holds leading positions in categories such as tea, ketchup and malted food drinks.
The clarification comes after both HUL and Unilever last year spun off their ice cream businesses to give the segment greater operational flexibility and sharper market focus, particularly in high-growth regions like India.
Globally, Unilever’s packaged foods division contributes over a quarter of its total revenue but faces increasing pressure due to changing consumer preferences, rising competition from private labels and softer demand for ultra-processed products.