HUL evaluating options for ice cream business following Unilever's global separation plan

HUL operates in the Indian ice cream market with three brands Magnum, Kwality Walls and Cornetto.

Hindustan Unilever (HUL) announced on March 19 that it is considering various options for the future of its ice cream business, following the announcement of its parent company, Unilever, to globally separate the vertical. The London-based Unilever intends to simplify, focus and enhance its performance by separating the ice cream business, which may result in a loss of 7,500 jobs. When asked about the potential impact of this move on the Indian business, the Indian subsidiary of Unilever (HUL) stated that it is examining different options.

"As far as the Indian ice cream business is concerned, we are evaluating the various options in light of this announcement. We will discuss this with the HUL Board and Unilever management in the coming months. Once the approach is finalised, we will communicate further," said a HUL spokesperson.

Ice creams contributed 3 percent or Rs 59,144 crore to HUL revenue in FY23.

The spokesperson stated that the ice cream business of Unilever has a unique business model, which involves a cold-chain go-to-market operating model, seasonality, and a distinct innovation rhythm when compared to the other business divisions.

Hindustan Unilever Limited (HUL) operates in the Indian ice cream market with three brands - Magnum, Kwality Walls, and Cornetto. HUL's ice cream business is a part of the Food & Refreshment segment, which accounts for 25 percent of its revenue. The segment has helped HUL's Foods and Refreshment vertical deliver robust performance in FY23, alongside Foods and Coffee.

HUL reported a standalone net profit of Rs 2,519 crore for the December quarter of FY24, an increase of just 0.55 percent from the year-ago period.

(With PTI inputs)