HUL to demerge its exports biz into separate entity

MUMBAI: FMCG major Hindustan Unilever Limited (HUL) today said that it will demerge its exports business into a separate entity--Unilever India Exports--soon.

The board of the Indian arm of the global MNC, Unilever Plc, has already approved a proposal to spin-off its exports business, that currently contributes to around 5-6 per cent of its overall business at Rs 1,000-crore.

"We have got the Board approval and are awaiting shareholder approval on the same. We have articulated our exports strategy and will transfer all the export related business to a wholly-owned subsidiary.

"This move is to focus more on exports which contributes around 5-6 per cent of our overall business at Rs 1,000-crore," HUL's Head (Investor Relation), Srini Srinivasan, told reporters over a conference call here.

The company in a notice to the Bombay Stock Exchange had mentioned that the spin-off included specific exports- related manufacturing units of the company into Unilever India Exports Ltd with effect from April 1.

HUL, which announced its financial results today, said though the company has posted a 6.46 per cent increase in consolidated net profit to Rs 2,296.05-crore for the year ended March 31, 2011, its net for the last quarter in FY 11 was marginally down by 2 per cent at Rs 569-crore.