Hindustan Unilever separates its Ice Cream Business

To accelerate the growth, Unilever announced the separation of its “Ice Cream Business” from other businesses. The move was announced mainly as Ice Cream business has different operating model which will serve best as a standalone entity.

- Anirudha Jain

Following the global announcement, Hindustan Unilever Limited (Indian arm of Unilever Plc) announced the demerger of the “Ice Cream Business” undertaking into a separate company which shall later be listed on nationwide bourses.

Hindustan Unilever Limited (“HUL” or “Demerged Company”) is one of India's leading private sector companies and is engaged in the business of manufacturing, marketing, distribution, and sale of fast-moving consumer goods (FMCG). Currently, HUL has four key business segments:

• Home Care

• Beauty & Wellbeing

• Personal Care

• Food (including ice cream)

The equity shares of HUL are listed on nationwide bourses.

Kwality Wall's (India) Limited (“KWIL” or “Resulting Company”) is recently incorporated to facilitate the demerger of “Ice Cream business.” Currently, KWIL is a wholly owned subsidiary of HUL.

"Hindustan Unilever shall demerge its ice cream business following its parent announcement"

The Proposed Transaction:

Following the announcement by HUL’s parent entity, Unilever PLC, of its intention to separate its ice cream business globally, the Board of Directors of HUL had undertaken a comprehensive review and had decided to separate the Ice Cream Business Undertaking through “demerger” given its different operating model, including differentiated infrastructure for supply and distribution, capital allocation needs, distinct channel landscape and go-to-market strategy.