HUL establishes KWIL for ice cream business

HUL approved the demerger of its ice cream division, which includes popular brands like Kwality Wall’s, Cornetto, and Magnum

Hindustan Unilever Limited (HUL) has established a new subsidiary, Kwality Wall’s (India) Ltd (KWIL), as part of its plan to spin off its ice cream business. According to a regulatory filing, KWIL will oversee the demerger, which is under review by HUL’s board. HUL will retain full ownership of KWIL, holding 100 per cent of its issued and subscribed share capital.

On November 25, 2024, HUL approved the demerger of its ice cream division, which includes popular brands like Kwality Wall’s, Cornetto, and Magnum, into a standalone listed entity. Existing HUL shareholders will receive shares in the new company proportional to their current HUL holdings.

This decision followed recommendations from an independent committee formed in September 2024. The committee noted that the ice cream business operates under a distinct model requiring specialised cold chain infrastructure and unique distribution channels, limiting integration opportunities with HUL’s broader operations.

HUL’s parent company, Unilever PLC, had previously indicated plans to separate its global ice cream business across different regions. For the financial year ending March 2024, HUL reported revenue of Rs 59,579 crore from product sales.

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