Archive · 7 Aug 2025
HUL to Demerge Kwality Wall's Ice Cream Business, List in FY26
Hindustan Unilever is splitting off its ice cream business, Kwality Wall's, so it can grow faster.
Unilever, the parent company, is doing this globally because they think ice cream is different from other products.
Shareholders will get shares in the new Kwality Wall’s company.
The new company will have its own money and management.
The ice cream market in India is growing quickly, and the new company hopes to do very well.
It is expected to have double-digit growth.
Currently, the ice cream business has low profits, but this is expected to improve as the company expands.
Hindustan Unilever Ltd (HUL) is demerging its ice cream business, Kwality Wall’s (India) Ltd (KWIL), with listing expected by Q4FY26.
The demerger is part of a global separation by parent company Unilever PLC, which views ice cream as having a distinct business model.
KWIL will be set up with net positive assets and an independent board and management team.
Shareholders of HUL will receive shares in KWIL in a 1:1 ratio, and the new entity aims for double-digit growth.
The Indian ice cream market is projected to exceed $5 billion by FY25, offering significant growth potential.
- Who
- Hindustan Unilever Ltd (HUL) and Kwality Wall’s (India) Ltd (KWIL), with parent company Unilever PLC.
- What
- HUL is demerging and listing its Kwality Wall's ice cream business.
- When
- The demerger is expected to conclude by Q4FY26.
- Where
- India
- Why
- To allow the ice cream business to grow faster with a more focused approach and independent identity.
HUL and Unilever PLC
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Business Strategy
HUL and Unilever PLC
Separation will give Kwality Wall's an independent identity and operational autonomy, allowing it to scale faster.
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- Demerger Completion
- Q4FY26 (estimated)
- KWIL Brands
- Kwality Wall’s, Cornetto, Magnum
- HUL Shareholders
- ~1.2 million
- Share Entitlement Ratio
- 1:1
- KWIL Assets
- Net assets over ₹900 crore
- Employees Transferred
- 1,200
- Projected Ice Cream Market Size (FY25)
- Over $5 billion
- Current Ice Cream Segment Operating Margin
- Low single digits