Hindustan Unilever Limited (HUL) has announced preliminary board approval to spin off its ice cream business in India into an independent, publicly traded entity. The move is part of Unilever’s broader plans to restructure its portfolio and achieve cost savings of €800 million by 2025, with the aim of exiting the sector entirely.
Following an internal review launched in September, HUL concluded that a demerger is the best option to enhance the value of the business and shareholders. The business, which includes well-known brands such as Kwality Wall's, Cornetto and Magnum, is considered a growth business, with medium to high profitability and great growth potential.
The operation aims to create a company dedicated to the sector, with a more focused and flexible management, able to better respond to market dynamics and fully exploit the opportunities offered by this category.
