CHENNAI: Hindustan Unilever Ltd (HUL) has announced plans to demerge its ice cream division into a separate listed company by the end of financial year 2025–26. The move is part of a broader strategy by its parent company, Unilever Plc, to unlock value and sharpen the strategic focus of its diverse business segments.
The demerged unit, to be known as Kwality Wall’s (India) Ltd (KWIL), will include popular brands such as Kwality Wall’s, Cornetto, Magnum, Feast, and Creamy Delight. The business currently contributes around ₹1,800 crore to HUL’s annual revenue, roughly 3% of its total turnover.
The proposal, which received board approval in November 2024 and was formally cleared under a scheme of arrangement in January 2025, is now awaiting regulatory, shareholder, and National Company Law Tribunal (NCLT) approvals. A shareholder vote on the scheme is scheduled for August 12.
Under the proposed structure, HUL shareholders will receive one share in the new ice cream entity for every share held in HUL. Magnum HoldCo, an arm of Unilever’s global ice cream business, will acquire approximately 61.9% stake in KWIL. As per SEBI norms, it will also make an open offer to public shareholders.
The new entity will inherit all assets and liabilities of the ice cream business, including five manufacturing facilities, a workforce of 1,200 employees, and positive working capital. While KWIL will begin operations debt-free, it will have access to funding for future expansion, including freezer installations and capacity building.
HUL’s Chief Financial Officer Ritesh Tiwari stated that the demerger would offer greater strategic flexibility and enable focused investments in a fast-growing segment. He said the business is expected to grow in double digits over the coming years, driven by increasing consumer demand and low per capita ice cream consumption in India.
The separation is part of Unilever’s global restructuring strategy, under which it plans to spin off its €15 billion ice cream business into a new company called The Magnum Ice Cream Company, with planned listings in Amsterdam, London, and New York by late 2025. Unilever is expected to retain less than 20% of the new global entity post-listing.
By spinning off the ice cream business, HUL aims to ensure sharper operational focus, optimized capital allocation, and enhanced value creation for shareholders. The demerger will also enable the ice cream business to operate independently in a category that requires high capital intensity and a differentiated go-to-market strategy.