Hindustan Unilever Limited (HUL) has created a new subsidiary, Kwality Wall’s (India) Ltd (KWIL), as part of its plan to demerge its ice cream business into an independent entity. The move is based on recommendations from an Independent Committee formed in September 2024, which highlighted the unique operational model of the ice cream segment, including cold chain infrastructure and a distinct distribution network.
The demerger, approved by HUL’s Board in November 2024, will result in Kwality Wall’s operating as a separate listed entity. Existing shareholders of HUL will receive shares in the new subsidiary in proportion to their current holdings. HUL will initially own 100% of KWIL’s issued and subscribed share capital.
The ice cream portfolio, which includes brands like Kwality Wall’s, Cornetto, and Magnum, will be managed independently from HUL’s broader FMCG operations to optimize its specialized business model. This decision aligns with a global strategy announced earlier by Unilever PLC, HUL’s parent company, to separate its ice cream business across jurisdictions.
For the financial year ending March 2024, HUL reported ₹59,579 crore in revenue from product sales, underscoring the strategic importance of its portfolio realignment efforts.