HUL’s Ice-Cream Business to Be Demerged Into New Listed Company: What It Means

Hindustan Unilever (HUL) is set to demerge its ice-cream business into a new listed company called Kwality Wall’s India Ltd (KWIL). Once the process is completed, every HUL shareholder will receive one KWIL share for each HUL share they own. Unilever’s global ice-cream arm, Magnum HoldCo, will hold about 61.9% of the new entity.

The move aligns with the global plan of Unilever PLC, which has already decided to separate its worldwide ice-cream business. The aim is to simplify its portfolio and focus on its four main categories: Beauty & Wellbeing, Personal Care, Home Care and Nutrition.

Why is HUL Spinning Off the Business?

Ice-cream does not fit into HUL’s largely asset-light model. It needs heavy cold-chain infrastructure, high upfront capital and seasonal marketing spends. By creating KWIL, HUL can focus on its core businesses while allowing the ice-cream division to grow independently with the right structure and investment.

KWIL will begin with strong fundamentals with over ₹900 crore in net assets and 5 manufacturing plants. It will own 19 warehouses and employ 1,200 employees. It will be operating nearly 2.5 lakh freezer cabinets across India.

Annual Ice-Cream Consumption Has Risen To 1.6 Litres Per Person

India’s ice-cream market is expanding quickly. Average consumption has grown from 400 ml per person a decade ago to 1.6 litres today. Although this is rising fast, it is still far below countries like the US and China, leaving huge room for growth.

The market, worth around ₹30,000 crore, is expected to cross ₹90,000 crore in eight years. Kwality Wall’s currently holds a low-teens market share, behind Amul’s 40%+, but the large unorganised segment gives it room to scale.

What Does KWIL Intend To Do? 

KWIL can use its existing freezer network to expand deeper into India, especially rural areas where rising incomes are creating new demand. The company also plans to strengthen its presence in milk-based ice creams and expand premium brands such as Magnum and Cornetto. Growth in quick-commerce platforms offers another chance to reduce seasonality and boost sales throughout the year.

Challenges to Watch

The new company will face several hurdles:

• Lower margins than HUL’s main business
• Seasonal demand swings, with summers driving most sales
• High working-capital needs, especially for cold-chain expansion
• Raw-material cost volatility, including milk, sugar and vegetable oils
• Strong regional competition from brands like Vadilal, Arun and Havmor

KWIL will need to manage costs, keep freezers productive, and push new products to maintain growth.

Read more: ETERNAL (Formerly Zomato) Becomes India’s Fastest-Growing Major Brand in 2025.

Conclusion

The demerger gives HUL a cleaner business structure and gives KWIL the freedom to invest aggressively in a fast-growing category. While challenges remain, the long-term opportunity in India’s ice-cream market is large. The success of the move will depend on how quickly KWIL can strengthen its presence, improve margins and build a national brand that grows consistently throughout the year.

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