Hindustan Unilever (HUL) announced the creation of a new subsidiary, Kwality Wall’s (India) Ltd (KWIL), as part of its plan to spin off its ice cream division. The new entity will house the company’s popular ice cream brands such as Kwality Wall’s, Cornetto, and Magnum.
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This move, which is currently under review by the HUL board, aims to streamline the business by separating the ice cream segment from HUL’s other operations. As per the plan, HUL will retain full ownership of the new subsidiary, holding 100% of its share capital.
The decision to demerge was finalized after a board meeting on November 25, 2024. Shareholders of HUL will receive shares in the new ice cream company, based on their current stake in HUL. This follows a recommendation from an Independent Committee set up by the company earlier in September. The committee highlighted that the ice cream business operates under a different model—one that requires specialized cold-chain infrastructure and has a unique distribution setup—making it challenging to align with the broader HUL operations.
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With the demerger underway, the ice cream business is set to become an independent, publicly listed company, which will open new avenues for growth and operational focus.
