Unilever's Demerged Ice Cream Business to Secure 61.9% Stake in Kwality Wall's

Global FMCG giant Unilever has announced that its newly formed ice cream business entity, Magnum HoldCo, will acquire a 61.9% stake in Kwality Wall’s (India) Ltd. This strategic move follows the planned demerger of Unilever’s global ice cream portfolio and the separation of Hindustan Unilever Ltd’s ice cream business in India.

Unilever’s Ice Cream Demerger and New Entity Creation

On March 19, 2024, Unilever PLC revealed plans to spin off its global ice cream business into a stand-alone company named The Magnum Ice Cream Company. The decision aligns with its broader corporate restructuring strategy aimed at streamlining operations and sharpening focus on core business areas. The separation process is scheduled for completion by the fourth quarter of 2025.

This reorganisation also reflects in India, where Hindustan Unilever Ltd (HUL) decided to demerge its ice cream division into a new independent publicly listed company: Kwality Wall’s (India) Ltd (KWIL) as announced on January 22, 2025.

Stake Acquisition by Magnum HoldCo

In India, following the HUL demerger, Unilever Group shareholders will receive 1 share of KWIL for each HUL share they own. Upon completion, Unilever Group will hold 61.9% of KWIL’s issued and paid-up capital. This entire portion will be acquired by Magnum HoldCo, the Netherlands-based holding company under The Magnum Ice Cream Company.

This acquisition is backed by a Share Purchase Agreement signed between the concerned Unilever entities and Magnum HoldCo. However, the completion is contingent on several conditions, including successful execution of the HUL demerger, listing of KWIL shares on stock exchanges, and receiving necessary regulatory approvals.

Read More: Nestlé India Approves 1:1 Bonus Share Issue!

Open Offer to KWIL Public Shareholders

As per Securities and Exchange Board of India (SEBI) takeover regulations, Magnum HoldCo will also initiate an open offer to acquire additional equity from KWIL’s public shareholders. This multi-step procedure ensures transparency and provides an exit opportunity for retail investors, consolidating the ownership structure under the newly formed ice cream business.

Strategic Implications and Market Positioning

This consolidation allows Unilever to redefine its FMCG portfolio while empowering Magnum Ice Cream Company to focus entirely on scaling frozen dessert operations globally. Kwality Wall’s already holds a strong position in the Indian ice cream segment, and backing from an international player positions it for aggressive expansion across urban and emerging markets.

Conclusion

The acquisition of a 61.9% stake in Kwality Wall’s (India) Ltd by Magnum HoldCo marks a significant structural shift in Unilever's ice cream operations. Through this demerger and subsequent share buy, Unilever will facilitate a focused and agile growth strategy for its frozen dessert vertical, both globally and in India.

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