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HUL rebuts divestment buzz, reaffirms foods business as ‘Core’ amid Unilever-McCormick talks
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Monday, 23 March, 2026, 13 : 00 PM [IST]
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Our Bureau, Mumbai
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Hindustan Unilever Limited (HUL) has formally denied rumours regarding the potential sale of its foods division, labeling the segment as a "core and attractive" pillar of its Indian operations. The clarification, issued on March 20, 2026, came shortly after parent company Unilever PLC confirmed it had received an inbound offer for its global foods business.
In a regulatory filing with the BSE and NSE, HUL stated it is "not in any discussions regarding divestment of the foods portfolio." This definitive stance from the Indian subsidiary stands in contrast to the global parent's announcement. Unilever PLC confirmed to the London Stock Exchange that it is engaged in preliminary discussions with U.S.-based McCormick & Company following an unsolicited offer.
While Unilever noted that the board considers the foods business highly attractive—featuring market-leading brands like Knorr and Hellmann’s—it maintained that there is "no certainty" a deal will be reached.
For HUL, the foods and refreshment business is a massive revenue driver, contributing over Rs 15,000 crore annually, or roughly 22% of its total sales. The company holds dominant market positions in India across categories such as tea, ketchups, and malted food drinks (including Horlicks and Boost). The recent speculation follows a broader restructuring trend within the FMCG giant. Last year, both HUL and Unilever completed the spin-off of their respective ice cream businesses into independent entities to sharpen operational focus.
Industry analysts suggest that while the global parent may be looking to streamline its portfolio toward high-growth beauty and personal care segments, the high-margin and deep-rooted nature of HUL’s food brands in India makes a domestic exit unlikely in the near term. For now, HUL continues to invest in the category, recently approving a Rs 2,000 crore expansion for its premium manufacturing capabilities.
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