Hindustan Unilever (HUL), a major player in the fast-moving consumer goods industry, plans to separate its ice cream business in order to increase its value and improve market performance.

This strategic restructuring will allow HUL to focus on its core portfolio while positioning the ice cream segment for growth.

HUL's recent quarterly performance has improved, driven by higher prices, and the outlook for the medium term is positive due to factors such as protectionist measures in the tire industry and the China plus strategy.

Although current valuations are not considered cheap, the spin-off could attract interest from domestic and international ice cream and dairy companies, which could further stimulate the market.

The seasonal nature of the ice cream market and its relatively lower valuation compared to other FMCG categories highlight the importance of this move for HUL.