Hindustan Unilever’s (HUL) ice cream business, which includes popular brands like Kwality Wall’s and Magnum, has become the center of attention as several major firms express interest in acquiring it. The company is forming an independent committee to assess the future of its ice cream segment amidst rapid growth in India’s ice cream market driven by rising disposable incomes and product innovations.
In a significant move, multiple companies are vying for a chance to acquire a slice of Hindustan Unilever’s (HUL) ice cream business as the consumer goods giant evaluates options for the future of its frozen dessert portfolio. HUL’s lineup includes well-known brands like Kwality Wall’s, Cornetto, and Magnum, which together contribute around 3% of its annual revenue of over ₹60,000 crore.
HUL is considering spinning off the ice cream business as it reorganizes its product portfolio. The company has set up an independent committee to decide on the next steps for this vertical, according to sources cited by the Economic Times. Among the interested companies are RJ Corp., which manages brands like KFC and Cream Bell, MMG Group, which runs McDonald’s in parts of India; and Nestlé’s local unit. They are awaiting the committee’s recommendation before making their moves.
This decision comes as Unilever, HUL’s parent company and the world’s largest ice cream producer, is restructuring its global operations. The Indian ice cream market is thriving, with estimates predicting it will exceed $5 billion by FY25. Companies are attracted to the growth potential, especially in Tier II and III cities, where premium products and innovative flavors are gaining traction. Additionally, the rise of quick-commerce platforms like Frogo has expanded the reach of frozen foods, including ice creams.
Despite being a household name, HUL faces stiff competition in the Indian market from domestic giants like Amul and emerging brands such as Go Zero and Noto. Expansion into hyperlocal and digital channels has become a key strategy to tap into changing consumer habits, which now prioritize convenience and novelty in indulgence categories.
With the ice cream sector becoming increasingly competitive, the outcome of HUL’s decision on whether to spin off or sell its business will significantly impact the market’s dynamics.