Hindustan Unilever Receives Shareholders' Approval for Ice Cream Business Demerger

Hindustan Unilever Ltd (HUL), one of India’s largest FMCG companies, has moved a step closer to creating a separate listed entity for its ice cream business after securing overwhelming shareholder approval for the demerger.

Shareholder Approval and Voting Outcome

HUL announced that the resolution for the demerger of its ice cream business, which owns popular brands such as Kwality Wall's, Cornetto and Magnum, has been approved by the requisite majority. The decision follows a meeting convened as per the National Company Law Tribunal’s directions.

According to the scrutiniser's report, 99.99% of the votes cast were in favour of the proposal. The voting process was conducted virtually through remote e-voting and e-voting at the meeting held on Tuesday.

Details of the Scheme of Arrangement

The approved scheme involves the separation of the ice cream business into an independent listed entity. This arrangement is between Hindustan Unilever Limited, Kwality Wall’s (India) Ltd, and their respective shareholders.

The terms specify that all existing shareholders of HUL will receive shares in the new company in a ratio of 1:1, ensuring that their proportional ownership remains intact post demerger.

Alignment with Global Parent Strategy

This move mirrors the decision taken by HUL’s global parent company, Unilever, which has opted for a global separation of its ice cream business. The alignment with global restructuring efforts indicates a strategic streamlining of operations.

Timeline for Completion and Listing

HUL’s Chief Financial Officer recently indicated that the demerger process is expected to be completed within the current financial year. The listing of the new ice cream entity on the stock exchanges will follow soon after, subject to necessary regulatory approvals.

Read More: HUL Q1 FY26 Results; PAT Rises 8% YoY, Revenue Up Nearly 4%!

Hindustan Unilever Share Price Performance

As of 10:32 AM, on August 13, 2025, the Hindustan Unilever share price was trading marginally lower by 0.21%. 

Conclusion 

The shareholder nod marks a significant milestone in HUL’s journey to establish its ice cream business as an independent entity.

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in securities are subject to market risks. Read all related documents carefully before investing.