HUL constitutes committee to discuss the way forward for ice-cream business

In its stock exchange filing, the company said that the board also accorded its approval to explore potential structures and alternatives for the same

Hindustan Unilever (HUL) on Friday decided at its board meeting to constitute a committee of independent directors to evaluate the prospects of the company’s ice cream business.

The maker of Magnum ice cream said, “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.”

“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,” it said in a release.

In its stock exchange filing, the company said the board also accorded its approval to explore potential structures and alternatives for the ice cream business.

This comes after the parent company Unilever stated earlier this year it would separate its global ice cream business.

The ice cream business contributes less than 5 per cent to HUL’s total turnover. In FY24, its turnover stood at Rs 59,579 crore.

In March, Unilever also announced the launch of a comprehensive productivity programme to drive focus and growth through a leaner and more accountable organisation. Unilever has also started the consultation process in Europe with employees who may be impacted by the proposed changes.

The Financial Times newspaper reported that the global consumer major’s new CEO Hein Schumacher has planned this move to boost the company’s growth. The move is expected to cut 3,200 roles across Europe and is part of the cost savings programme announced in March which includes 7,500 jobs.

HUL had earlier told Business Standard in an email statement that it would closely assess global initiatives of Unilever under the productivity programme and evaluate what works best for its business and its people after its parent told the employees that it would cut a third of its office-based jobs in Europe by the end of 2025.

“We will closely assess the global initiatives of Unilever under the productivity programme and evaluate what works best for our business and our people,” HUL had said.

“In HUL, we have been continuously transforming to unlock productivity. For instance, we have a very robust cost-savings program called Symphony that we have been driving for many years. Through an end-to-end focus across all lines of the P&L (profit & loss), we have been generating gross savings of around six 6 per cent of turnover every year,” it added.