HUL Board moves to separate ice cream business for growth and focus

Hindustan Unilever Limited (HUL) has officially announced a strategic move to separate its Ice Cream business, a decision made by the company's Board of Directors. This announcement follows the establishment of a committee of Independent Directors tasked with assessing the future of this specific business segment.

In a bid to maximize shareholder value, the Board plans to finalize the separation method by the end of this year, guided by the committee's recommendations. The decision to spin off the Ice Cream segment aligns with a thorough evaluation conducted by the Independent Committee, which scrutinized several crucial factors influencing this choice.

The Board noted that the Ice Cream category is poised for significant growth and necessitates substantial investments to unlock its full potential. As Unilever holds the trademarks and expertise for the Ice Cream products, there is a pressing need to develop local capabilities to maintain and expand this business successfully. The distinct operating model of the Ice Cream division—characterized by unique cold chain infrastructure and a specialized channel landscape—presents challenges in achieving synergies with HUL's broader operations.

Additionally, this restructuring will allow HUL to focus more intensely on its core business areas, particularly in high-demand sectors like Beauty, Foods, Health, and Wellbeing. Separating the Ice Cream business is expected to grant it the flexibility and focus required to thrive independently.

Following the Board's deliberations on this matter, HUL will provide necessary disclosures in line with SEBI Listing Regulations and other applicable laws.

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