HUL's Strategic Move: Aspiring for Double-Digit Growth Amidst Ice-Cream Demerger

HUL is poised for more than 10% earnings growth, balancing investor concerns as it spins off its ice-cream business. Chairman Nitin Paranjpe assured shareholders of HUL's long-term value despite past share price stagnation, highlighting a promising outlook for the independent ice-cream entity.

FMCG giant Hindustan Unilever Limited (HUL) is aiming for over 10% earnings growth in the medium to long term, according to Chairman Nitin Paranjpe. Speaking to shareholders, Paranjpe emphasized the strategic benefit of demerging its ice-cream business, while assuring continued value delivery for stakeholders.

Paranjpe candidly addressed concerns regarding HUL's stagnant share price, reaffirming the company's long-standing commitment to consumer satisfaction and shareholder returns. 'Our aspiration is to achieve an earnings growth of about 10% plus, considering a medium to long-term perspective,' he stated.

The demerger involves HUL's ice-cream brands, which will form an independent listed entity. Shareholders will receive proportional shares in this new entity, offering them the chance to decide on retaining or realizing their investments, as the ice-cream sector, despite its minor share in HUL's portfolio, remains promising.

(With inputs from agencies.)