The Board of Directors of Hindustan Unilever Limited (HUL) in its meeting held on January 22, 2025 has approved the arrangement between HUL and its wholly owned subsidiary Quality Walls (India) Limited (KWIL) for the demerger of the ice cream business of HUL into KWIL. Approved the plan.
As per the plan, for every one equity share held in HUL, one equity share of KWIL will be allotted. Following the divestment and listing of KWIL, the entire shareholding of KWIL will be directly held by the shareholders of HUL.
KWIL will be a leading listed ice cream company in India, with management equipped with greater focus and flexibility to implement strategies suited to its specific business model and market dynamics. Additionally, the business will be equipped with the portfolio, brand and innovation expertise from the largest global ice cream business, enabling it to become a market leader.
Rohit Java, CEO and Managing Director, HUL, said, “Our ice cream category is a high-growth business with iconic brands like ‘Quality Walls’, ‘Corneto’ and ‘Magnum’ operating in a lucrative segment. The demerger will provide fair value to HUL shareholders and allow them to remain invested in Ice Cream’s growth journey. This demerger is in accordance with the provisions of the Companies Act, 2013 and other applicable laws, and the demerger will be subject to statutory and regulatory approvals.
Business Standard in its November 2025 report on this matter had said that the company had said in an exchange filing that the decision to separate the ice cream business is subject to the approval of the shareholders. The demerger plan will be presented to the board early next year i.e. January 2025. The Board considered various ways to demerge the ice cream business and has given in-principle approval for demerger of the business after due deliberations with a view to ensuring maximum value for all shareholders.
HUL had said the demerger will create a leading listed ice cream company in India with focused management and greater flexibility to implement strategies in line with its unique business model and market dynamics. Additionally, the business will draw on the portfolio, brand and innovation expertise of the largest ice cream business globally, enabling it to maintain its success in the market. Ice cream business is a high growth sector for HUL. The company operates in this sector with ‘mid to high single digit profitability’.
In September 2024, the company’s board had constituted a committee of independent directors to evaluate the prospects and further planning of the ice cream business following Unilever’s decision to spin off its ice cream business. Based on the recommendation of the independent committee, the board had announced the separation of this business in October 2024.