The Board had constituted a committee of Independent Directors of the Company (“Independent Committee”) to evaluate the way forward for the Business. The Board’s decision to separate is in line with the recommendation made by the Independent Committee following a comprehensive review of the Business.
The Independent Committee considered the following key aspects in arriving at its decision to separate the Business:
- Ice Cream, which contributes c.3% to HUL’s turnover, is a high-growth category that needs significant investments to realise its full potential.
- Given Unilever owns the trademarks and know-how and has announced the separation of its Ice Cream business, local capabilities will need to be developed to continue running the Business.
- Ice Cream has a different operating model including cold chain infrastructure, and a distinct channel landscape, which limits synergies with rest of HUL.
This portfolio restructuring will enable HUL to sharpen focus on the core business and further strengthen its play in trending demand spaces such as Beauty, Foods, Health and Wellbeing. It will also enable the Ice Cream business to operate with greater flexibility and focus. With the aim of maximising value for all shareholders, the Board, based on the recommendations of the Independent Committee, will determine the mode of separation by the end of this year.
The Company shall make necessary disclosures in accordance with the SEBI Listing Regulations and other applicable laws, post consideration of the matter by the Board.
