Based on the further recommendations of the independent committee, the Board will determine the mode of separation by the end of this year with an objective of maximising value for all shareholders, says HUL. Photo: HUL official website
Hindustan Unilever Limited (HUL), a leading player in the fast-moving consumer goods (FMCG) sector, has announced plans to demerge its ice cream business. This decision was made during a board meeting held on October 23, 2024, based on recommendations from an Independent Committee.
This move follows HUL’s earlier announcement about separating its hotels business, aiming to unlock greater value for shareholders. In a statement, HUL confirmed, “The Board has decided to separate the Ice Cream business based on the recommendation of the Independent Committee.”
The company is expected to finalize the details of the separation by the end of the year, focusing on maximizing value for its shareholders.
Stock Market Reaction
On the Bombay Stock Exchange (BSE), HUL shares closed at ₹2,658.00 on Wednesday, down by 0.90% or ₹24.05. Over the past year, the stock has seen a growth of 6.98%, while the benchmark Nifty 50 index has surged by 26.73%.
The demerger of the ice cream business is seen as a strategic step by HUL to streamline its operations and enhance shareholder value in a competitive market. As the company continues to adapt to changing consumer preferences, this move could position HUL for stronger performance in the future.
