Hindustan Unilever's (HUL) recent move to set up an independent committee to assess the future of its ice-cream business has generated significant interest within the industry. Speculation is rife that the consumer goods behemoth might decide to sell off this division, drawing attention from major companies such as RJ Corp, Nestle, and the MMG Group.
The ice-cream brands under HUL, which include Kwality Wall’s, Cornetto, and Magnum, represent about 3% of the company's annual sales, which exceed Rs 60,000 crore. The formation of this committee is viewed as a strategic move by HUL as it explores potential structures and alternatives for the restructuring of its ice-cream business, indicating a possible strategic exit from this segment.
Companies like RJ Corp, already present in the ice-cream sector with its Cream Bell brand, and Nestle, the world's largest packaged food company, see clear synergies with HUL's ice-cream business. Nestle, in particular, with its established dairy network, may find the acquisition seamless and complementary to its existing portfolio. The MMG Group, known for McDonald's operations and a Coca-Cola franchise bottler, also presents synergies with its cold chain and frozen dessert infrastructure that could benefit from an ice-cream acquisition.