As per the news article in Business Standard, following is the scenario:
The ice-cream brands under HUL, including Kwality Wall’s, Cornetto, and Magnum, account for about 3 per cent of the company’s annual sales, which exceed Rs 60,000 crore.
(HUL) decision to form a committee of independent directors to assess the future of its ice-cream business has sparked high interest among major companies, with speculation rising that the consumer goods giant may eventually sell the division, reported The Economic Times citing industry insiders.
Companies like RJ Corp, which operates KFC and Pizza Hut chains and handles bottling for PepsiCo, the MMG Group, which runs McDonald’s in North and East India and is a Coca-Cola franchise bottler, as well as the local unit of Nestle SA, are closely watching HUL’s move. These companies are expected to evaluate a potential acquisition of the ice-cream business, depending on the committee’s decision, sources said.
On Friday, HUL announced the formation of the independent committee to explore “potential structures and alternatives for the restructuring” of its ice-cream business, signalling the possibility of a strategic exit.
“These suitors have clear synergies with the ice-cream business, and any deal will likely revolve around the business’s valuation,” an industry executive told The Economic Times.
| Subscribe To Our Free Newsletter |
