HUL Forms Panel to Evaluate Ice Cream Biz Prospects

New Delhi, Sep 6 (PTI) FMCG major Hindustan Unilever Ltd on Friday said its board has decided to constitute a panel of independent directors to evaluate the prospects of its ice cream business.

The board of directors of the company at its meeting held on Friday discussed the way forward for its ice cream business.

After due consideration, the board has decided to constitute a committee of independent directors to evaluate in detail the prospects of the business, Hindustan Unilever Ltd (HUL) said in a statement.

This follows the announcement, earlier this year, by the company's parent entity, Unilever PLC, about its intention to separate its global ice cream business across jurisdictions, it added.

The committee will "make recommendations to the Board on the best way forward, keeping in mind the interest of all our stakeholders", it added.

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, the company said.

HUL operates in the Indian ice cream market with three brands Magnum, Kwality Walls and Cornetto. Its ice cream business comes under the Food & Refreshment segment, which represents 25 per cent of its revenue.

In March this year Unilever announced a strategic intent to separate the ice-cream vertical globally.

The company stated that it intended to transform itself into a simpler, more focused and higher-performing company by separating the ice cream business, a move expected to result in a loss of 7,500 jobs globally.