Hindustan Unilever (HUL) announced its intention to demerge its ice-cream business into a separate, independently listed entity. The move, which aims to unlock value and foster focused growth, has received in-principle approval from the company’s board.
The proposed demerger is designed to provide the ice-cream business—featuring brands such as Magnum, Cornetto, and Kwality Wall’s—a tailored operating model and supply chain suited to its distinct manufacturing and distribution needs. The scheme of arrangement for the demerger will be presented to the board and shareholders early next year for final approval.
In a statement, HUL emphasized that the new structure would create a leading listed ice-cream company in India, enabling focused management and greater strategic flexibility. “This step will unlock fair value for shareholders and give them an opportunity to participate in the growth journey of the ice cream category,” the company said.
The ice-cream business contributes approximately ₹2,000 crore, or 3% of HUL’s total sales. While HUL has a commanding position in home and personal care categories, it faces stiff competition in the Indian ice-cream market from brands like Amul, Mother Dairy, Vadilal, and Naturals.
The demerger is part of a broader strategy by parent company Unilever, which earlier this year announced a global restructuring of its ice-cream operations. Unilever, the world’s largest ice cream maker, is reportedly considering divesting the segment globally, with private equity firms among potential acquirers.
The Indian ice-cream business will continue to leverage Unilever’s expertise in branding, innovation, and product portfolio management, ensuring its growth trajectory aligns with global standards.
This strategic realignment underscores HUL’s commitment to driving focused growth while enhancing shareholder value in a competitive market.