Kwality Wall’s (India) Ltd has entered into a three-year intellectual property agreement with its parent company, Magnum IP Holdings B.V., under which the company will pay zero royalty until 31 March 2027.
The waiver has been granted to support Kwality Wall’s India’s planned investments and stabilisation efforts following the demerger of its ice cream business.
According to the company’s stock exchange filing, the royalty rate will remain at 0 per cent until the end of FY27. For FY28 and FY29, the royalty has been fixed at 1 per cent of net sales of licensed products, plus applicable taxes.
The company said its management reviewed the existing royalty arrangement after the demerger, taking into account changing business conditions, its revised strategy, financial position and competitive landscape.
A spokesperson for Kwality Wall’s (India) Ltd said the new intellectual property agreement is an important milestone in the company’s journey as a standalone listed entity under The Magnum Ice Cream Company.
The spokesperson added that the agreement will give the company greater flexibility to invest in its brands, expand distribution, strengthen capabilities and accelerate growth in India.
Kwality Wall’s India said it remains focused on innovation, consumer engagement and building sustainable long-term value as a pure-play ice cream business.