HUL Forms Panel To Look Into Ice Cream Business Prospects

Aimed at evaluating the prospects of its ice cream business, Hindustan Unilever or HUL has decided to constitute a panel of independent directors to make recommendations on the same. The fast-moving consumer goods (FMCG) major had a meeting of its board of directors where they discussed the way forward for its ice cream segment.

“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,” the company said in a statement.

The company’s parent entity, Unilever PLC, notified, earlier this year, about its intention to separate its global ice cream business across jurisdictions and the decision to form a panel of independent directors follows the same, as per the statement of the company.

“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,” as per the statement of the company.

As far as the Indian ice cream market is concerned, Hindustan Unilever operates with three brands Kwality Walls, Cornetto and Magnum. Part of the Food and Refreshment segment, the ice cream business of the company represents around one-fourth of its revenue. As the company wishes to transition into a more focused, simpler and high-performing company, the decision to form the committee is being seen as a step towards the objective.