India’s largest FMCG’s board has approved the demerger of its ice cream business into a separate, independently listed entity.
This demerger will create a leading ice cream company in India, featuring a portfolio of iconic brands such as “Kwality Wall’s”, “Cornetto”, and “Magnum”.The newly formed entity will have greater flexibility to deploy customised strategies aligned with its distinct business model and market dynamics, unlocking new avenues for growth.
Share Price Movement
The share price of Hindustan Unilever Limited went up by 0.3 percent to Rs. 2,478.6 per share on Tuesday, an increase from its previous close of Rs. 2,471.45 per share. The market capitalisation now stands at approximately Rs. 5,82,346 crore as of November 26, 2024.
What Happened
The HUL Board has accorded in-principle approval to demerge the Ice Cream business into an independent listed entity. The demerger will create a leading ice cream company in India with iconic brands like “Kwality Wall’s”, “Cornetto” and “Magnum”. The business will have greater flexibility to deploy strategies suited to its unique model. Shareholders will receive shares in the new entity proportionate to their HUL holdings.
Q2 Financial Highlights
According to its recent filing, in the quarter ending September 2024, Hindustan Unilever’s consolidated revenue from operations has increased by 1.93 percent YOY from Rs. 15,623 crore in Q2 FY24 to Rs. 15,926 crore in Q2 FY25 and increased by 1.4 percent QoQ from Rs. 15,707 crore in Q4 FY24.
The company’s consolidated net profit has declined by 2.3 percent, from Rs. 2,657 crore in Q2 FY24 to Rs. 2,595 crore in Q2 FY25. As compared to the last quarter of 2025, the company’s net profit has decreased by 0.65 percent QoQ from Rs. 2,612 crore.
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Market Outlook
The Indian food processing industry appears to have a promising outlook. The market size is expected to reach over US$ 540 billion by 2028, exhibiting strong growth. Digital advertising in the FMCG industry is also growing, reaching US$ 9.92 billion by 2023, with FMCG being a major contributor.
Additionally, India’s dairy industry is projected to experience healthy revenue growth, driven by strong consumer demand and increased raw milk supply. The government’s policy support and higher investments in the sector further indicate a positive trajectory for the Indian food processing industry.
Shareholding Pattern
As of the November 2024 shareholding pattern, Hindustan Unilever Limited is primarily held by the promoters at 61.90 percent, domestic institutional investors hold 12.17 percent, and the public with 11.75 percent.
About Company
Hindustan Unilever Limited (HUL), one of India’s leading FMCG companies, has been shaping consumer lifestyles since its inception in 1933. Headquartered in Mumbai, it operates as a subsidiary of Unilever PLC, which holds a 52.5% stake.
HUL’s global reach extends to over 190 countries, offering trusted products under renowned brands like Lux, Lifebuoy, and Dove. With an unwavering focus on innovation, the company has firmly established itself as a household name.
HUL’s operations span four key segments: Home Care, Personal Care, Foods and Refreshments, and Frozen Desserts. Popular offerings include Surf Excel, Vaseline, Kissan, and Kwality Walls. The company’s history reflects strategic growth through mergers, acquisitions, and rural market penetration projects like Project Shakti.
HUL’s commitment to sustainability sets it apart. By integrating eco-friendly practices and social initiatives, the company enhances its community impact. Its diverse product portfolio and strategic focus continue to drive its leadership in India’s FMCG market.
Written By Fazal Ul Vahab
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