HUL Considering Ice Cream Division Demerger: Will it Enhance Value?
Hindustan Unilever Ltd. (HUL), India’s leading consumer goods manufacturer, finds itself at a crossroads as it evaluates the fate of its ice cream division amidst its parent company’s restructuring endeavors. Analysts weigh in on the potential implications of retaining or divesting the business, offering insights into the company’s strategic considerations and market dynamics.
The ice cream market, which includes well-known brands such as Magnum, Cornetto, and Kwality Walls, makes up a small portion of HUL’s large consumer goods portfolio. Even while the business only made up 3% of HUL’s FY23 sales of Rs 58,154 crore, its profitability is still quite low, accounting for only 2% of the company’s total earnings. Analysts so wonder if it would be feasible to continue the company given its meager financial importance.
