Hindustan Unilever (HUL) announced on March 19th that it is exploring various options for its ice cream business’s future, following its parent company Unilever’s global decision to separate the vertical. Unilever, headquartered in London, aims to streamline, concentrate, and improve its performance by dividing the ice cream business, a move that may lead to the loss of 7,500 jobs. When questioned about the potential ramifications for the Indian operations, the Indian subsidiary of Unilever (HUL) stated that it is assessing different courses of action.
“We are evaluating various options concerning the Indian ice cream business in light of this announcement. We will deliberate on this matter with the HUL Board and Unilever management in the forthcoming months. Once the approach is finalized, we will provide further updates,” said an HUL spokesperson.
In FY23, ice creams contributed 3 percent or Rs 59,144 crore to HUL’s revenue.
The spokesperson noted that Unilever’s ice cream business has a distinctive business model, involving a cold-chain go-to-market operating model, seasonality, and a unique innovation rhythm compared to other business divisions. Hindustan Unilever Limited (HUL) operates in the Indian ice cream market with three brands – Magnum, Kwality Walls, and Cornetto. HUL’s ice cream business is part of the Food & Refreshment segment, which constitutes 25 percent of its revenue. The segment has bolstered HUL’s Foods and Refreshment vertical’s strong performance in FY23, alongside Foods and Coffee.
