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Informist, Thursday, Oct. 30, 2025

 

--NCLT approves HUL's scheme to demerge ice-cream business Kwality Wall's

 

NEW DELHI – The Mumbai bench of the National Company Law Tribunal Thursday approved Hindustan Unilever Ltd.'s scheme of arrangement to demerge its ice-cream business Kwality Wall's (India) Ltd. into a separate listed entity. "From the material on record, the scheme appears to be fair and reasonable and is not violative of any provisions of law and is not contrary to public policy," said the tribunal.

 

In August, Hindustan Unilever's shareholders had approved the demerger of its ice-cream business Kwality Wall's (India) Ltd. into a separate listed entity. Of the 2 billion votes polled during the special resolution, nearly all accorded approval to the demerger, barring 41,763. For every share held in HUL, shareholders will get one share in Kwality Wall's India.

 

HUL said in the tribunal that the demerger will result in the separation of the ice cream business undertaking from the remaining business, which will enable these companies to sharpen focus on their respective businesses and strategies in pursuit of their respective growth and value creation models. The ice cream business undertaking operates in an attractive high-growth category and has built iconic brands such as Kwality Wall's, Cornetto and Magnum and the demerger would create a leading listed ice cream company in India, which will have a focused management with greater flexibility to deploy strategies suited to its distinctive operating model and market dynamics, to realise its full potential, said HUL.

 

HUL said that the resulting company will have the ability to benefit from the portfolio, brand and innovation resources and technical expertise from the largest global ice cream business enabling it to keep winning in the market space. The demerger will enable the demerged company to drive sharper focus in the business as it further accelerates its play in high-growth demand spaces, strengthening its future fit portfolio, said HUL.

 

Thursday, shares of Hindustan Unilever closed 0.7% lower at INR 2,469.60 on the National Stock Exchange.  End

 

Reported by Surya Tripathi

Edited by Deepshikha Bhardwaj

 

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