The Mumbai bench of the NCLT has cleared Hindustan Unilever’s proposal to transfer its ice cream business into a new entity called Kwality Wall’s (India). The move marks a key step in the company’s ongoing portfolio restructuring aimed at sharper category focus.
The ice cream portfolio, which includes brands such as Kwality Wall’s, Cornetto, Magnum and Feast, contributes around Rs 1,800 crore annually, accounting for about 3% of Hindustan Unilever’s total turnover. As part of the demerger plan, existing shareholders will receive one share of KWIL for every one share held in Hindustan Unilever.
After the demerger, Unilever PLC will continue to hold around 61.9% in the new company through its global ice cream arm, Magnum HoldCo. The listing of KWIL on Indian stock exchanges is expected by the end of FY 2025–26, subject to remaining regulatory and procedural clearances.
The move is aligned with Unilever’s global strategy to create a standalone ice cream business that can operate with greater agility and market focus. Industry analysts say the separation allows Hindustan Unilever to strengthen its core FMCG portfolio in beauty, personal care and home products, while KWIL will be able to channel more investments into cold chain infrastructure, retail expansion and new product innovation.
Experts also believe the demerger will help the new entity attract dedicated investors in India’s fast-growing frozen desserts segment, which is projected to reach Rs 10,000 crore by 2027. Both companies are expected to benefit from operational clarity and category-specific strategies following the restructuring.
With the NCLT approval, Hindustan Unilever has moved closer to completing one of its most significant structural changes in recent years, positioning itself for sharper growth and value creation across its portfolio.
