Hindustan Unilever Ltd. is evaluating various options for its ice cream business, the company told CNBC-TV18 exclusively in a statement. The move comes after its parent Unilever Plc, decided to spin off its $8 billion ice cream business.
The company said in a statement that it will hold discussions with the board and Unilever's management in the coming month and further communication will be disclosed one the approach is finalised.
Ice cream contributed 3% to HUL's overall revenue in financial year 2023.
Here's the company's response to CNBC-TV18:
Unilever today announced a strategic intent to separate the Ice Cream business. Through this, they intend to transform Unilever into a simpler, more focussed, and higher-performing company. The ice cream business has an inherently different business model, including a cold-chain Go-to-Market operating model, seasonality, and a different innovation rhythm compared to the rest of Unilever's business.
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. Ice creams contributed to 3% of HUL Revenue in FY23.
We have a very robust cost savings program in HUL called Symphony, that we have been driving for many years now. Through an end-to-end focus across all lines of the P&L, we have been generating gross savings of nearly 6% of turnover every year. This provides us crucial fuel for growth allowing us to invest competitively behind our brands and future capabilities. We will closely assess the global initiatives of Unilever under the productivity programme and assimilate best practices to take Symphony to its next phase.
Shares of Hindustan Unilever are trading 0.3% lower at ₹2,261. The stock has declined 10% over the last 12 months.
(Edited by : Hormaz Fatakia)
First Published: Mar 20, 2024 9:34 AM IST
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