HUL's scoop: In a hot market, all scream for ice cream
Hindustan Unilever (HUL) which comes with a large market share as it assesses the prospects of its ice-cream business. HUL sells ice-cream brands such as Kwality Wall's, Cornetto and Magnum. The companies eyeing HUL's business expect the consumer goods market leader would not just spin off the business but also eventually sell it, ET has reported.
RJ Corp that operates quick-service chains KFC and Pizza Hut, handles bottling for PepsiCo and sells the Cream Bell ice-cream, the MMG Group which runs McDonald's in North and East India and is also a franchise bottler for Coca-Cola, as well as the local unit of Nestle SA are among the companies open to evaluating HUL's ice-cream business, depending on the independent committee's decision, as per an ET report based on information from people familiar with the matter.
On Friday, the company said it was setting up an independent committee to evaluate «the way forward» for the ice-cream business.
Why HUL wants to scoop out its ice-cream business
HUL parent Unilever is the world's biggest ice-cream maker with brands such as Ben & Jerry and Magnum. The Rs 7.9-billion business accounts for 16% of its revenue. In India, HUL's ice-cream brands such as Kwality Wall's, Cornetto and Magnum contribute about 3% to its annual sales of more than Rs 60,000 crore. HUL's ice cream business comes under the Food & Refreshment segment, which represents 25 per cent of its revenue.
Unlike the home and personal care categories where HUL is a dominant leader, the company trails Amul in the
