Hindustan Unilever Limited (HUL), a leading FMCG company in India, has announced a significant addition to its board. Bobby Parikh, a seasoned financial advisor and corporate governance expert, has been appointed as an Independent Director for a five-year term, commencing from December 1, 2025, to November 30, 2030. This appointment, subject to shareholder approval, marks a strategic move by HUL to enhance its leadership team.

Key Highlights of the Appointment

• Term: Five consecutive years from December 1, 2025, to November 30, 2030
• Additional Roles:
  • Chairman of the Risk Management Committee
  • Member of the Audit Committee

Bobby Parikh's Profile

Bobby Parikh brings a wealth of experience to HUL's board:

• Expertise: Strategic advisory, financial strategy, and regulatory frameworks
• Current Positions: Holds directorships in notable companies including Infosys, Biocon, and Indostar Capital
• Past Leadership Roles:
  • Co-founder of BMR Advisors
  • CEO of Ernst & Young India
  • Country Managing Partner at Arthur Andersen
• Educational Background: Commerce graduate from the University of Mumbai and a qualified Chartered Accountant

Board's Perspective

Nitin Paranjpe, Non-Executive Chairman of HUL, expressed enthusiasm about the appointment:

"We are delighted to welcome Bobby to the HUL Board as an Independent Director. His experience, combined with expertise in financial strategy and regulatory frameworks, has helped organisations steer complex transformative business changes. We look forward to his insights and contributions in the Company's next phase of growth."

Parikh's Vision

Upon his appointment, Bobby Parikh stated:

"It is an honour to join the Board of Hindustan Unilever Limited, a company that has set benchmarks in corporate governance and responsible business. I look forward to working with my fellow Board members and the leadership team to help steer HUL through new opportunities and challenges."

Corporate Governance Implications

This appointment underscores HUL's commitment to strengthening its corporate governance framework. Parikh's extensive experience in guiding businesses through transformations and his expertise in financial strategy are expected to bring valuable insights to HUL's board deliberations.

Conclusion

Bobby Parikh's appointment as an Independent Director at Hindustan Unilever Limited represents a strategic move to enhance the company's leadership and governance structure. With his diverse experience and expertise, Parikh is well-positioned to contribute to HUL's future growth strategies and navigate the challenges in the ever-evolving FMCG sector.

Hindustan Unilever Limited (HUL), one of India's leading fast-moving consumer goods (FMCG) companies, has reached a significant milestone in its strategic restructuring plan. The company announced that it has received approval from the National Company Law Tribunal (NCLT) for the demerger of its ice cream business, marking a crucial step in separating this segment from its main operations.

Key Details of the Demerger

The NCLT, Mumbai Bench, has sanctioned the Scheme of Arrangement for the demerger of HUL's Ice Cream Business Undertaking. This arrangement involves the transfer of the ice cream business to Kwality Wall's (India) Limited, a wholly-owned subsidiary of HUL. The scheme was approved under Sections 230 to 232 and other applicable provisions of the Companies Act, 2013.

Rationale Behind the Demerger

The decision to separate the ice cream business aligns with the global strategy announced by HUL's parent company, Unilever PLC. The rationale for this demerger includes:

1. Distinct Operating Model: The ice cream business has a differentiated infrastructure for supply and distribution, requiring a separate capital allocation strategy.

2. Market Focus: The demerger will allow for a more targeted approach to the ice cream market, which operates in a high-growth category.

3. Brand Strength: The ice cream business has built iconic brands such as 'Kwality Wall's', 'Cornetto', and 'Magnum'.

4. Shareholder Value: The move is expected to unlock value for HUL shareholders, giving them the flexibility to invest in the growth journey of the ice cream business separately.

Share Entitlement Ratio

As part of the demerger process, HUL has announced the following share entitlement ratio:

For every one equity share of face value Re. 1/- held in HUL, shareholders will receive one equity share of face value Re. 1/- in Kwality Wall's (India) Limited.

Future Outlook

The creation of an independent, listed ice cream company is expected to sharpen focus and enable more tailored strategies for both HUL and the new ice cream entity. This separation is anticipated to facilitate:

• Enhanced management focus on respective business models
• Greater flexibility in deploying strategies suited to distinct market dynamics
• Potential for accelerated growth in the high-growth ice cream category

Compliance and Next Steps

HUL has confirmed that it will comply with all statutory requirements as mandated by the Companies Act, 2013, and rules and regulations made thereunder. The company is required to file the NCLT order with the Registrar of Companies within 30 days of receiving the certified copy.

As the ice cream industry continues to evolve, this strategic move by HUL positions both the core FMCG business and the ice cream segment for potential growth and value creation in their respective markets.