Hindustan Unilever Limited (HUL) has clarified that its foods business remains a core part of its strategy and is not up for sale, putting to rest speculation around a potential divestment. The statement comes even as parent company Unilever confirmed it is in discussions with McCormick & Company following an offer for its global food division.
In a regulatory filing, HUL emphasized that it is not engaged in any talks to divest its foods portfolio, underscoring the segment’s importance to its India operations. The foods business—which includes leading brands such as Knorr and Horlicks—generates over ₹15,000 crore in annual revenue and contributes roughly 22% to the company’s total sales, making it a significant growth pillar.
While Unilever has acknowledged ongoing discussions regarding its broader food portfolio, it also reiterated that there is no certainty of a deal and highlighted the strong financial profile and strategic relevance of the business. Globally, Unilever’s packaged foods division contributes more than a quarter of its revenue, though it has been facing structural challenges such as slowing demand, rising competition from private labels, and shifting consumer preferences away from ultra-processed foods.
The clarification also comes in the context of Unilever’s ongoing portfolio reshaping efforts. Last year, both HUL and Unilever spun off their ice cream businesses into a separate entity to improve operational focus and competitiveness. However, unlike ice cream, the foods segment continues to be viewed as a stable and scalable category, particularly in markets like India where demand for packaged staples and nutrition products remains strong.
For HUL, maintaining a strong foothold in foods aligns with its broader strategy of balancing high-growth categories with steady, high-volume segments. With established leadership across multiple categories including tea, ketchup, and malted beverages, the company appears committed to leveraging its scale, distribution network, and brand equity to drive sustained growth in the foods space.
