Unilever’s long-awaited global ice cream split is entering its final phase in India, with the company confirming that the demerger between Hindustan Unilever Ltd (HUL) and Kwality Wall’s India Ltd (KWIL) is scheduled to formally take place on December 1, 2025. The move is expected to boost HUL’s profitability as early as the next financial quarter.
Globally, the separation of Unilever’s ice cream division—now being carved out as The Magnum Ice Cream Company (TMICC)—has garnered significant attention. The company has repeatedly highlighted that ice cream operates under a “very different” business and supply chain model, necessitating its split from Unilever’s core product portfolio.
Demerger Timeline: Global Delays, But India on Track
While Unilever’s global demerger—initially targeted for November 10—has been delayed due to issues surrounding TMICC’s US listing, India’s local separation remains on schedule.
“We expect to complete the demerger by December and anticipate having the new ice cream business listed separately by Q4 FY2026, subject to necessary regulatory approvals,” HUL CFO Ritesh Tiwari told investors during the firm’s latest earnings call.
With formal execution set for December 1, the ice cream business will be classified as a discontinued operation when HUL reports its Q3 FY2025 results.
Profit Boost Expected Despite Weak Ice Cream Season
The ice cream business—contributing a little over 3% to HUL’s revenues—has faced year-on-year declines due to an unusually extended monsoon and GST restructuring. Yet, HUL maintains that removing this low-margin category from its books will significantly strengthen its profitability.
Tiwari confirmed that the demerger is expected to improve HUL’s EBITDA margin by 50–60 basis points (0.5%–0.6%) on an annualized basis.
“We expect this improvement to reflect immediately in the next quarterly results, assuming the demerger proceeds as planned,” he said.
Global Ice Cream Woes Continue for Unilever
Unilever’s ice cream unit has been navigating turbulence worldwide.
TMICC’s IPO preparations in the US have faced roadblocks, while controversy continues around the Ben & Jerry’s brand—including legal disputes, public disagreements over social issues, and product launch blockages by Unilever’s parent office.
Although India’s KWIL demerger has been smooth so far, industry insiders caution that the global hurdles serve as a reminder that execution risks remain until the process formally concludes.
A Key Moment for HUL’s Reshaped Portfolio
If finalized on December 1, the demerger will mark one of the most significant restructurings in HUL’s recent history—freeing the company to sharpen its focus on home care, beauty, personal care, and foods, while allowing the new ice cream entity to pursue growth independently.
With India’s ice cream category evolving rapidly—driven by new packaging formats, quick commerce expansion, and premiumisation—analysts expect KWIL’s standalone performance to attract strong investor attention once listed.
For now, all eyes are on December 1, when HUL begins its next chapter without ice cream on its balance sheet—and with profitability set to rise.