Hindustan Unilever spins off subsidiary for exports

FMCG major Hindustan Unilever Ltd is demerging its export business into a separate unit. The board of directors of the company at its meeting yesterday, approved a proposal for the demerger of the company's exports.

Accordingly, HUL's FMCG exports business, including specific exports related manufacturing units, will be spun off into a wholly owned subsidiary, Unilever India Exports Ltd (UIEL), with effect from 1 April 2011, the company said in a stock market filing.

HUL said the move would help the company to fully exploit the opportunity in export market and o provide necessary focus, flexibility and speed to the business.

The proposal, however, is subject to necessary approvals. HUL would continue to provide all necessary support to UIEL in order to grow the exports business, the filing said.

HUL also informed the stock exchange that the register of members and shareholders of the company will remain closed from 12 to 27 July 2011 (both days inclusive) for the purpose of payment of final dividend at the 78th annual general meeting of the company, to be held on 28 July 2011.