Fast-moving Consumer Goods (FMCG) giant Hindustan Unilever Ltd (HUL) has constituted a committee, comprising its independent directors, to evaluate its ice cream business. The committee will evaluate the prospects of HUL’s ice cream business and will make recommendations to the board.
“This follows the announcement, earlier this year, by the Company’s parent entity, Unilever PLC, about its intention to separate its global ice cream business across jurisdictions. After due consideration, the Board has decided to constitute a committee of Independent Directors of the Company (’Independent Committee’) 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 interest of all our stakeholders. Based on the recommendation of the Independent Committee, the matter will be placed for final consideration of the Audit Committee and the Board at their respective meetings to be scheduled in due course,” the company informed the stock exchanges.
Bid to push Growth Action Plan
Earlier in March, the parent company Unilever had announced the separation of the ice cream business as part of accelerating its Growth Action Plan (GAP).
“A demerger of ice cream is the most likely separation route, and in that case we expect the company to operate with a capital structure in line with comparable listed companies. Other options for separation will be considered to maximise returns for shareholders. The costs and operational dis-synergies relating to the separation of ice cream will be determined by the precise transaction structure chosen. Separation activity will begin immediately, with full separation expected by the end of 2025. Further information will be provided in due course,” mentions a statement from Unilever.
Following separation, Unilever will operate four business groups across beauty & wellbeing, personal care, home care and nutrition.
“The separation of ice cream and the delivery of the productivity programme will help create a simpler, more focused, and higher performing Unilever. It will also create a world-leading ice cream business, with strong growth prospects and an exciting future as a standalone business,” said Ian Meakins, Chair of Unilever.