Hindustan Unilever Scheme of Arrangement Sanctioned by NCLT for Ice Cream Business Demerger

Hindustan Unilever Limited (HUL) has announced that the Hon’ble National Company Law Tribunal (NCLT), Mumbai Bench, has sanctioned its scheme of arrangement for the demerger of its Ice Cream Business, which includes Kwality Wall’s (India) Limited. This approval marks a significant step in HUL’s restructuring efforts to separate its ice cream operations from its broader business portfolio.

Details of the Scheme of Arrangement

On October 30, 2025, the NCLT approved the scheme of arrangement under Sections 230 to 232 of the Companies Act, 2013. The scheme facilitates the demerger of Hindustan Unilever's Ice Cream Business, which will now be transferred to Kwality Wall’s (India) Limited, a subsidiary of HUL. This process involves the restructuring of operations and is expected to streamline the business units for more focused growth and operational efficiency.

The approval from NCLT comes after the filing of the initial letter dated September 18, 2025, and signifies the completion of an essential legal step for the demerger process.

Effective Date and Appointed Date of the Scheme

According to the scheme, the "Effective Date" will be the first calendar day of the month following the fulfilment of the necessary conditions outlined in Clause 20 of the scheme. The "Appointed Date" is the same as the Effective Date. 

Hindustan Unilever will announce the Effective Date to the stock exchanges once all conditions have been fulfilled and the necessary steps have been completed. The certified copy of the NCLT order is awaited, marking the final approval of the demerger process.

What This Means for HUL and Kwality Wall's

The sanctioning of the scheme is expected to help HUL and Kwality Wall's (India) Limited operate with more clarity and focus on their respective business areas. With the separation, both companies can pursue their growth strategies independently, enabling better management of their resources and operations. This move could unlock greater value for shareholders and improve operational performance in their respective segments.

Read More:Hindustan Unilever Receives Shareholders' Approval for Ice Cream Business Demerger!

Hindustan Unilever Share Price Performance

On October 31, 2025, Hindustan Unilever share price opened at ₹2,469.00 on NSE, below the previous close of ₹2,469.60. During the day, it surged to ₹2,474.90 and dipped to ₹2,459.60. The stock is trading at ₹2,469.20 as of 9:25 AM. The stock registered a marginal change of -0.02%.

Over the past week, it has declined by 1.70%, over the past month, it has declined by 2.64%, and over the past 3 months, it has declined by 2.06%.

Conclusion

The NCLT's sanctioning of Hindustan Unilever’s scheme for the demerger of its Ice Cream Business represents a crucial milestone in the company's business restructuring. The approval is a step towards greater operational focus, which will allow both Hindustan Unilever and Kwality Wall’s (India) Limited to pursue growth strategies aligned with their business goals.

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