Hindustan Unilever (HUL) has received in-principle approval from the Board of Directors to demerge the Ice Cream business into an independent listed entity. Subject to the necessary approvals and procedures to be followed in accordance with the applicable laws, it is proposed that the shareholders of HUL will receive shares in the new entity in proportion to their shareholding in HUL. 

The decision to demerge is subject to approval of the Board and the shareholders to the scheme of demerger to be placed before the Board early next year. The Board considered different modes of separation of the Ice Cream business and after due consideration, with a view to maximize value for all the shareholders, the Board has accorded in-principle approval to demerge the business.

In September, the Board had constituted a committee of Independent Directors of the Company to evaluate the prospects and way forward for the Ice Cream business pursuant to Unilever’s decision to separate their Ice Cream business. Based on the recommendation of the Independent Committee, the Board had announced the separation of the business in October 2024.

Hindustan Unilever is in the FMCG business comprising primarily of Home Care, Beauty & Personal Care and Foods & Refreshment segments.