HUL Demerger: Hindustan Unilever’s Ice Cream Business Set for Major Separation After NCLT Approval

Market Performance

On a busy day in the stock market today, the spotlight quietly shifted toward Hindustan Unilever. The conversation wasn't about quarterly numbers or demand trends this time. It was about structure — a major step in HUL’s long-running corporate journey.

The company finally received the green signal from the National Company Law Tribunal (NCLT) to carve out its ice cream business into a separate entity. And in a market where restructuring stories often stir interest, this development naturally grabbed attention.

For investors tracking HUL share price, the news added a fresh layer of curiosity around how the conglomerate plans its next phase.

HUL Ice Cream Business Demerger: What Really Happened

The demerger isn’t a sudden decision. It follows a clear direction set earlier by the parent organisation to restructure and separate the global ice cream portfolio. In India, this translates into Hindustan Unilever demerging its ice cream business, moving it into a newly formed company named Kwality Wall’s (India) Ltd (KWIL).

The regulatory filing on October 30 confirmed the approval under Sections 230 to 232. The NCLT bench found the arrangement “fair” and in line with policy requirements.

This decision sets the foundation for a standalone ice cream entity that houses some of India’s most familiar brands.

What Moves to the New Entity

Under the approved scheme, HUL will transfer:

• Kwality Wall’s
• Cornetto
• Magnum
• Feast
• Creamy Delight

These brands have consistently shaped the company’s presence in the frozen dessert aisle. All of them now shift under the umbrella of KWIL.

The ice cream business may contribute about 3% to HUL’s turnover, but it needs a very different operating setup — especially around cold chain infrastructure and a more specialised retail network. That’s where the separation seeks to provide sharper focus.

Key Financial and Structural Details of the HUL Demerger

To make the transition smooth and transparent, Hindustan Unilever laid out the essential numbers and operational shifts. Here’s the breakdown in clean, reader-friendly pointers:

Key Financial Snapshot

• Annual revenue contribution from ice cream business: ₹1,800 crore
• Share of total HUL turnover: ~3%

Share Swap Ratio

• HUL shareholders will receive 1 share of KWIL for every 1 share held in HUL.

Regulatory Approval Path

• NCLT approval under Sections 230–232
• Stock exchanges have already provided a No Objection
• Shareholder meeting conducted on 12 August 2025

Listing Timeline

• KWIL is expected to be listed in Q4FY26

Employees & Assets Transfer

• Five manufacturing facilities
• Around 1,200 employees
• All relevant assets and liabilities
  All will move to KWIL, which will start debt-free.

Company Details: A New Chapter for Hindustan Unilever and KWIL

The demerger sets up two separate paths:

For Hindustan Unilever

The move allows HUL to run its remaining portfolio — beauty, foods, health, home care — with a sharper lens. The ice cream arm required a distinct supply chain and operating model, which had limited synergy with the overall structure. This separation gives HUL the agility to focus on its scale-heavy categories.

For the Ice Cream Business

The ice cream division will now function as a standalone company, with operational independence and dedicated management.

The new entity, KWIL, will have:

• Its own board
• A focused business model
• The backing of its parent’s global know-how

Why the Hul Demerger Matters in the Stock Market Today

Even though the ice cream business is a relatively smaller piece of the HUL portfolio, the move is significant because it reshapes the company’s structure.

For investors closely observing HUL stock price and hindustan unilever share price trends, corporate restructuring often becomes part of the market narrative. With a clear separation plan, the organisation sets the stage for two distinct business lines, each with its own priorities.

Summary

The HUL demerger marks a defining moment for Hindustan Unilever, as the company prepares to spin off its ice cream business into Kwality Wall’s (India) Ltd.

With:

• NCLT approval secured
• A clear share swap ratio
• ₹1,800 crore annual business shifting out
• Five manufacturing units and 1,200 employees moving to the new subsidiary

The restructuring creates a standalone ice cream company built around some of India’s most iconic frozen dessert brands.