HUL forms independent committee to evaluate way forward for ice cream business

FMCG major Hindustan Unilever Ltd said its board has decided to constitute a panel of independent directors to evaluate the way forward for its ice cream business. This follows an earlier declaration by the company’s parent entity, Unilever PLC, regarding its intention to separate its global Ice Cream operations across jurisdictions.

The Board of Directors of Hindustan Unilever Limited at its meeting held today, discussed the prospects of its ice cream business. "After due consideration, the Board has decided to constitute a committee of Independent Directors of the Company (“Independent Committee”) to evaluate in detail the prospects of the Company’s Ice Cream business and to make recommendations to the Board on the best way forward, keeping in mind the interest of all our stakeholders," Hindustan Unilever Ltd (HUL) said in a statement.

Based on the recommendation of the Independent Committee, the matter will be placed for final consideration of the Audit Committee and the Board at their respective meetings to be scheduled in due course, the company said.

Hindustan Unilever Limited (HUL) operates in the Indian ice cream market through its three popular brands: Magnum, Kwality Wall's, and Cornetto. The ice cream business is part of HUL’s Food & Refreshment segment, which accounts for 25 percent of the company's total revenue.

In March this year, Unilever, HUL’s parent company, announced its strategic plan to separate the ice cream division globally. The move is aimed at streamlining operations and transforming Unilever into a simpler, more focused, and higher-performing company. However, the separation is expected to lead to the loss of approximately 7,500 jobs worldwide.