Archive · 31 Oct 2025
HUL's Ice Cream Business Demerged into Kwality Wall's India Following NCLT Approval
Imagine Hindustan Unilever, a big company that makes many products, has an ice cream business.
This ice cream business, which includes popular brands like Kwality Wall’s and Magnum, will now become its own separate company called Kwality Wall’s India.
The government's special court, the NCLT, has given permission for this to happen.
This means the ice cream company will have its own shares that people can buy, and it will be easier for it to get the money it needs to grow.
HUL's shareholders will get shares in this new ice cream company too.
The main part of the old HUL company will focus on other things like health and beauty products.
The parent company, Unilever, will still own a big part of the new ice cream company, ensuring they continue to support it.
Hindustan Unilever (HUL) has received NCLT approval to demerge its ice cream business into Kwality Wall’s (India) Ltd.
The demerged entity will encompass HUL's ice cream brands, including Kwality Wall’s, Cornetto, Magnum, Feast, and Creamy Delight.
HUL shareholders will receive one share of Kwality Wall’s for every share they hold in HUL.
Magnum HoldCo, associated with Unilever, will hold a 61.9% stake in the new ice cream company.
The ice cream business contributes approximately ₹1,800 crore annually, about 3% of HUL's turnover.
All assets, liabilities, five manufacturing facilities, and around 1,200 employees will transfer to Kwality Wall’s (India) Ltd.
The move is part of Unilever's global strategy to separate its ice cream operations.
The demerger aims to provide dedicated investment and operational flexibility to the ice cream business.
Kwality Wall’s (India) Ltd is expected to be listed on stock exchanges in the fourth quarter of fiscal year 2026.
This restructuring allows HUL to focus on its core business in Beauty, Foods, and Health & Wellbeing.
- Who
- Hindustan Unilever Ltd (HUL) and its parent company Unilever, through Magnum HoldCo.
- What
- HUL's ice cream business has been demerged into a new, separate entity named Kwality Wall’s (India) Ltd (KWIL), which will be listed on stock exchanges.
- When
- NCLT approval was granted on October 30, with Kwality Wall's targeted for listing in Q4 FY26.
- Where
- India
- Why
- To allow the ice cream business to receive necessary investments, operate with greater flexibility, and enable HUL to focus on its core business areas.
- Demerger Approval
- National Company Law Tribunal (NCLT) Mumbai bench approved the demerger of HUL's ice cream business.
- New Entity
- The demerged ice cream business will operate as Kwality Wall’s (India) Ltd (KWIL).
- Brands Transferred
- Kwality Wall’s, Cornetto, Magnum, Feast, and Creamy Delight.
- Shareholder Entitlement
- HUL shareholders will receive one share of Kwality Wall’s for every share held in HUL.
- Magnum HoldCo Stake
- Magnum HoldCo (from Unilever) will acquire a 61.9% stake in Kwality Wall’s (India).
- Ice Cream Business Contribution
- Approximately ₹1,800 crore in annual revenues, representing nearly 3% of HUL's total turnover.
- Employees and Assets Transfer
- All assets, liabilities, five manufacturing facilities, and approximately 1,200 employees will move to KWIL.
- Listing Target
- Kwality Wall's is targeted to list on stock exchanges in Q4 FY26.
Sources
HUL receives NCLT nod for demerger of ice-cream business
HUL gets NCLT nod to hive off ice-cream biz into Kwality Wall’s
Mumbai News: NCLT Approves Demerger Of HUL And Kwality Wall’s, Paving Way For Independent Ice Cream Company
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