Board of directors approve demerger of HUL’s ice cream business into an independent listed company
Hindustan Unilever (HUL) has announced the demerger of its ice cream business, Kwality Wall’s (India) Limited (KWIL), into a standalone listed entity. The proposal, approved by HUL’s board on Wednesday, is subject to necessary statutory and regulatory clearances.
Under the scheme, shareholders of HUL will receive one equity share of KWIL for every HUL share they hold. Once the demerger process is complete and KWIL is listed, HUL shareholders will directly own the entire stake in the new entity.
In a statement, HUL highlighted that KWIL will emerge as a leading listed ice cream company in India. The newly independent entity will benefit from a dedicated management team focused on market-specific strategies while leveraging expertise from the world’s largest ice cream business.
Rohit Jawa, CEO and Managing Director of HUL, said, “Our ice cream category, with brands like ‘Kwality Wall’s,’ ‘Cornetto,’ and ‘Magnum,’ represents a high-growth business in an attractive market segment. The demerger will unlock value for HUL shareholders and provide them the flexibility to stay invested in the ice cream business’s growth story.”
The demerger will ensure a seamless transition for the business and its employees, according to the company. The scheme is structured in line with the Companies Act, 2013, and other relevant laws.