Last Updated:
Hindustan Unilever Ltd (HUL) has secured approval from the National Company Law Tribunal (NCLT) to spin off its ice-cream business
HUL Demerger
HUL Demerger: Hindustan Unilever Ltd (HUL) has secured approval from the National Company Law Tribunal (NCLT) to spin off its ice-cream business into Kwality Wall’s (India) Ltd.
In a regulatory filing on October 30, the FMCG major said the Mumbai bench of NCLT cleared the demerger scheme under Sections 230–232 of the Companies Act. The approval allows HUL to separate its ice-cream division — part of parent Unilever’s global Growth Action Plan (GAP) to carve out the category.
Under the demerger, all ice-cream brands including Kwality Wall’s, Cornetto, Magnum, Feast and Creamy Delight will move into the new entity.
With this nod, Kwality Wall’s (India) Ltd (KWIL) is set to become a dedicated, listed ice-cream company in India. HUL has outlined 10 key points regarding the demerger:
HUL Ice Cream Demerger: Top 10 Key Points
1) What has been approved?
HUL will hive off its entire ice-cream business into wholly owned subsidiary Kwality Wall’s (India) Ltd. Shareholders will get one KWIL share for every HUL share. Magnum HoldCo (Unilever) will acquire a 61.9% stake; remaining shares go to HUL shareholders.
2) Why demerge the ice-cream business?
The category contributes ~3% of HUL’s turnover but requires heavier investments, distinct supply-chain and operating models, and cold-chain infrastructure. Unilever has already announced global separation of its ice-cream portfolio.
3) What exactly did the NCLT approve?
The tribunal approved the Scheme of Arrangement, terming it fair and reasonable. HUL has already received stock exchange no-objection letters.
4) Business size
Ice-cream revenues are ~₹1,800 crore, accounting for nearly 3% of HUL’s turnover.
5) Share entitlement
HUL investors will receive 1 KWIL share for each HUL share held on the record date.
6) Timeline & listing
The demerger becomes effective on the first calendar day after all approvals are completed. KWIL is expected to list in Q4 FY26.
7) Employees & assets
All assets, liabilities, five plants and ~1,200 employees will move to KWIL. The entity will start debt-free with flexibility for future capital needs.
8) Unilever’s role
Through Magnum HoldCo, Unilever will retain majority ownership at ~61.9%.
9) Benefits to shareholders
Shareholders gain exposure to a focused ice-cream business, while HUL sharpens its core portfolio across beauty, foods, health and wellbeing categories.
10) Next steps
Magnum HoldCo will launch an open offer as per SEBI norms. KWIL will pursue independent growth and expansion.
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a…Read More
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a… Read More
October 31, 2025, 12:08 IST
Read More
