
The National Company Law Tribunal (NCLT), Mumbai Bench, has approved the demerger of Hindustan Unilever Ltd’s (HUL) ice cream business into a separate entity, Kwality Wall’s (India) Ltd. This move marks a new phase for the FMCG company as it aims to streamline its portfolio in line with global structural changes.
According to an exchange filing, the NCLT sanctioned the demerger on October 30, 2025, with a rectification order issued on November 6, 2025. The decision comes after HUL’s board approved the proposal on January 22, 2025, following the global parent company’s move to separate its ice cream business.
The demerger reflects the view that the ice cream division operates with a distinct business model, supply chain, and capital requirements compared to HUL’s other FMCG segments.
Under the approved scheme, shareholders of HUL will receive one equity share of ₹1 each in Kwality Wall’s (India) Ltd for every HUL share held, following a 1:1 ratio. This ensures a seamless transition for existing investors as the new company prepares to function independently.
The tribunal observed that the demerger would allow both entities to sharpen their strategic focus and align their operations more effectively. By forming a standalone, listed ice cream company, the plan aims to unlock value and enable better management of renowned brands such as Kwality Wall’s, Cornetto, and Magnum.
The NCLT bench, comprising Member (Technical) Prabhat Kumar and Member (Judicial) Sushil Mahadeorao Kochey, directed both companies to comply with all necessary regulatory requirements from SEBI, the stock exchanges, and the Income Tax Department to ensure a smooth transition.
Once the demerger takes effect, the ice cream unit will operate under Kwality Wall’s (India) Ltd, which will initially remain a wholly owned subsidiary of HUL until it becomes a separately listed company. This step is expected to help the new entity focus exclusively on innovation, market expansion, and operational efficiency within the frozen dessert category.
Hindustan Unilever (HUL) Share Price closed at ₹2,428 on November 11, 2025, reflecting a 0.78% rise for the day. With a market capitalisation of ₹5,70,316 crore, the company continues to be a major participant in India’s FMCG sector.
The stock trades at a price-to-earnings (P/E) ratio of 53.9, supported by a book value of ₹207 and a dividend yield of 1.77%, underlining its steady financial performance and investor confidence.
Read More:NCLT Approves Merger Of Suzuki Motor Gujarat With Maruti Suzuki India
The NCLT’s approval of HUL’s ice cream business demerger sets the stage for Kwality Wall’s (India) Ltd to function as a focused and independent entity. This move aligns with the company’s goal of optimising operations and strengthening business clarity within the consumer goods landscape.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/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 the securities market are subject to market risks. Read all the related documents carefully before investing.
Published on: Nov 11, 2025, 8:17 PM IST

Suraj Uday Singh
Suraj Uday Singh is a skilled financial content writer with 3+ years of experience. At Angel One, he excels in simplifying financial concepts. Previously, he cultivated his expertise at a leading mortgage lending firm and a prominent e-commerce platform, mastering consumer-focused and engaging content strategies.
Know MoreWe're Live on WhatsApp! Join our channel for market insights & updates