Unilever’s demerged ice cream business, now operating as a standalone entity (including brands like Magnum, Kwality Wall’s, and Cornetto in India), is aggressively pursuing a turnaround in the Indian market, where it sees unparalleled potential for expansion. The company predicts that India could surpass the United States to become the world’s largest ice cream market within the next 20 years, driven by low per capita consumption, rapid economic growth, urbanization, and rising demand in cities at all levels.
Peter ter Kulve, CEO of The Magnum Ice Cream Company, highlighted the challenges and opportunities during a recent investor call. “We are lucky that we have a very good position in India from which to build, but it was not a very successful business over the last 20 years. Basically, it lost a lot of shares. The profitability was flat. Last year, it was in decline. So we are in a turnaround mode,” he stated. He emphasized India’s status as the world’s biggest dairy market and compared its current low per capita ice cream consumption to opportunities seen in China in the early 1990s or Turkey in the late 1980s.
The Indian ice cream sector, currently valued at around $5 billion, is expanding rapidly amid booming consumption in urban and emerging areas. Unilever trails local leader Amul in the domestic market but views the country as offering “the biggest growth opportunity in the industry.” Factors include a young population with a “sweet tooth,” improving cold-chain infrastructure, and distribution through neighbourhood stores that require specialized freezers—areas where the company plans to invest heavily for faster execution and a competitive edge.
The demerger of Unilever’s global ice cream unit (completed in late 2025) aims to provide greater operational agility, particularly in high-growth regions like India. In a positive development for investors, Hindustan Unilever (HUL) secured listing approvals from the BSE and NSE for approximately 2.34 billion equity shares of its demerged Indian ice cream business (Kwality Wall’s India). Trading is set to commence on February 16, 2026, ahead of schedule. The global parent has plans to acquire the Indian unit in the first half of 2026, pending regulatory clearances.
This strategic push comes as Unilever’s ice cream arm seeks to reverse years of stagnation through innovation, premiumization (e.g., Magnum), expanded distribution, and sharper local focus—positioning India as a cornerstone of its future growth story.