Small is not big for HUL, bucks trend to hive off businesses

Strategy may change in future as competition grows, Say analysts

- VIVEAT SUSAN

UNLIKE PARENT UNILEVER, Hindustan Unilever (HUL) - its Indian subsidiary and the country's largest consumer goods company has opted against hiving off units ina bid to spur growth. But that trend, according to analysts, may undergo a change in the future, as rival and new-age brands get increasingly aggressive in the domestic market, forcing legacy players to redraw strategies.

Consider this: Unilever has just announced that it is separating its ice-cream business, which contributes 13.3% to its $64.5-billion revenue (for calendar year 2023), as it sets out to do "fewer things better, and with greater impact", according to CEO Hein Schumacher.

In India, an HUL spokesperson told FE that it was evaluating "various options". "We will discuss this with the HULboard and the Unilever management in the coming months. Once the approach is finalised, we will communicate further," the spokesperson said.