Finally, HUL, the FMCG giant that’s been in India’s breakfast baskets for decades, has decided to let its ice cream arm strike out on its own. Kwality Wall’s, with brands like Cornetto and Magnum, is carving its own path. This is more than corporate housekeeping; it’s a strategic move that could reshape how ice cream reaches our freezers.
Why This Matters
The demerger is part of a broader global strategy from Unilever, which is separating its ice cream business into a standalone company called The Magnum Ice Cream Company. HUL is mirroring that shift in India through a legal scheme of arrangement, think of a clean split, where existing shareholders will receive one share in Kwality Wall’s (India) Ltd (KWIL) for every HUL share they own.
Earlier this year, HUL cleared the board and regulatory checks. In a virtual vote, shareholders supported the move nearly unanimously—99.99% approved it. Now it's clear sailing toward a standalone listing by the end of FY 26.
A Fresh Scoop of Opportunity
Why spin off Kwality Wall’s in the first place? Ice cream, it turns out, is a very different ballgame compared to shampoos or soaps. It needs freezers, seasonal push, and deep freezer-to-consumer reach, making it resource-heavy and capital-intensive.
Creating KWIL gives it the freedom to operate on its own terms, focused investment in cold chains, tailored marketing, and even direct delivery models to the door. It’s a targeted strategy for growth in a market that’s still just getting started regarding ice cream consumption.
Built to Launch
When KWIL rolls out of the gate, it won’t start small. It will already have:
Net positive assets over ?900 crore
Five manufacturing plants
1,200 employees
2.5 lakh freezer cabinets
Positive working capital
the necessary infrastructure in order to get started immediately.
To top it off, Magnum HoldCo, Unilever’s new ice cream arm, will pick up 61.9% bof the new company, aligning KWIL with global brand strength and deeper market muscle.
What’s in Store for India
The ice cream business currently adds about ?1,800 crore annually to HUL’s top line, just 3% of sales. But the market is ready to grow. Per capita consumption has increased fourfold in a decade (from 400 ml to 1.6 litres), yet it’s still underwhelming compared to global heavyweights like the US or China.
This demerger gives KWIL room to explore new formats, think about affordable dairy treats, premium ranges, or rural delivery, without competing for capital with HUL’s core categories.
The Risks Behind the Sweet Opportunity
No business is sweet all the time. Ice cream is seasonal. Margins are low. And regional players like Amul or Vadilal already own big slabs of loyal customers. KWIL’s leadership will need to balance expansion with tight cost control and navigate oil and dairy price swings in a price-sensitive market. But with its infrastructure ready and strategy clear, KWIL appears built to handle the churn.
A Moment to Watch in India’s Business Story
This isn’t just another demerger; it’s about giving a growing category its own runway to soar. For consumers, it may soon mean more ice cream variety and smarter availability. For HUL shareholders, new opportunities, a second stock to watch with fresh growth potential.
Disclaimer
This blog is purely for educational purposes and should not be considered investment advice. Please do your own research or consult a registered financial advisor before making any investment decisions.