NCLT approves HUL’s ice cream business demerger

Hindustan Unilever (HUL) has received approval from the National Company Law Tribunal (NCLT), Mumbai Bench, for the demerger of its ice-cream business into Kwality Wall’s (India) (KWIL).The ice cream division currently contributes around 3% to HUL’s annual turnover, generating approximately ₹1,800 crore revenue.

Under the scheme, HUL will transfer brands including Kwality Wall’s, Cornetto, Magnum, Feast, and Creamy Delight to KWIL. Existing HUL shareholders will receive one share of KWIL for each share they hold in HUL. The global arm of HUL’s parent company, Unilever PLC, through its subsidiary Magnum HoldCo, will acquire a stake of approximately 61.9% in KWIL, with the balance held by HUL shareholders. 

With this approval, the structural separation of HUL’s ice-cream division aligns with Unilever’s global strategic move to spin off its ice-cream business into an independent listed company. The demerger is expected to complete by end of financial year 2025-26.