Scooping Out Independence: HUL’s Ice Cream Business Spins Off Into Kwality Wall’s Ltd

Updated: November 08, 2025 15:15

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Hindustan Unilever Ltd (HUL) has received the National Company Law Tribunal’s approval to demerge its ice cream division into Kwality Wall’s (India) Ltd. This strategic move aligns with parent Unilever’s global restructuring plan, enabling focused growth for the ice cream category, which contributes ₹1,800 crore to HUL’s annual revenue.

Hindustan Unilever Ltd (HUL), India’s leading FMCG company, is set to carve out its ice cream business into a standalone entity following the green light from the National Company Law Tribunal (NCLT). The Mumbai bench of NCLT sanctioned the Scheme of Arrangement under Sections 230 to 232 of the Companies Act, allowing the demerger of HUL’s ice cream undertaking into Kwality Wall’s (India) Ltd (KWIL).

This move is part of Unilever’s broader Growth Action Plan (GAP), which aims to streamline operations across four global business groups: beauty and well-being, personal care, home care, and nutrition. The ice cream division, which contributes approximately 3 percent to HUL’s total turnover, will now operate independently under KWIL, unlocking greater strategic flexibility and market responsiveness.

Key Developments:
Strategic Realignment: The demerger aligns with Unilever’s global restructuring efforts to give each category sharper focus. Ice cream, with brands like Kwality Wall’s, Cornetto, Magnum, Feast, and Creamy Delight, will now be managed separately to better address consumer trends and seasonal dynamics.

Shareholder Impact: Upon listing, KWIL will be a publicly traded company with its entire shareholding directly held by HUL shareholders. The share swap ratio is set at 1:1, ensuring seamless transition and value continuity.

Market Performance: On the day of the announcement, HUL’s stock traded marginally lower at ₹2,466 on the BSE, reflecting cautious investor sentiment amid the restructuring. The company’s market capitalization stood at ₹5.79 lakh crore.

Operational Focus: KWIL’s management will gain autonomy to tailor strategies suited to the ice cream segment’s unique challenges, including distribution logistics, cold chain management, and regional preferences.

Growth Potential: Analysts expect the standalone ice cream entity to pursue aggressive expansion, leveraging its brand equity and operational independence to capture a larger share of India’s growing frozen dessert market.

Sources: The Hindu Business Line, Moneycontrol, Goodreturns, News18, Hindustan Unilever official site.