
Hindustan Unilever Limited (HUL) has announced the demerger of its Ice Cream business into its wholly-owned subsidiary, Kwality Wall’s (India) Limited (KWIL). The decision, approved by the HUL Board, will allow KWIL to operate as a standalone listed entity, unlocking significant value for HUL shareholders.
Under the approved scheme, shareholders of HUL will receive one equity share of KWIL for every equity share held in HUL. Upon completion of the demerger and subsequent listing, KWIL’s shareholding will be directly held by HUL shareholders.
Rationale for the Demerger The move is part of Unilever PLC’s global strategy to separate its ice cream business, enabling focused management and growth. With iconic brands such as Kwality Wall’s, Cornetto, and Magnum, the demerged business operates in a high-growth segment. The separation will allow KWIL to benefit from greater operational flexibility, specialized strategies, and innovation expertise from the global ice cream business.
Key Highlights of the Scheme
- KWIL will inherit the Ice Cream Business Undertaking, valued at ₹1,595 crore for FY2024, representing 2.7% of HUL’s total turnover.
- No cash consideration is involved; the share allotment ratio will be 1:1.
- The resulting company, KWIL, will seek listing on both NSE and BSE.
Management Insights Rohit Jawa, CEO & MD of HUL, stated: “The demerger reflects our commitment to unlocking fair value for shareholders while enabling focused growth in the high-potential ice cream category.”
Approvals and Next Steps The demerger is subject to shareholder, creditor, regulatory, and statutory approvals under the Companies Act, 2013.