The National Company Law Tribunal (NCLT), Mumbai Bench, has approved Hindustan Unilever Limited’s (HUL) much-anticipated Scheme of Arrangement to demerge its Ice-Cream Business Undertaking into Kwality Wall’s (India) Limited.
The scheme, pursued under Sections 230–232 of the Companies Act, 2013, received its final sanction on October 30, 2025. This demerger aims to unlock value, sharpen focus, and enable more agile management of HUL’s fast-growing frozen-dessert portfolio.
Once the procedural conditions are met, the company will notify exchanges of the Effective Date, which is expected to coincide with the first day of the month following completion of all approvals and filings.
For HUL, this marks a strategic step toward business specialization. Its food and refreshment portfolio—spanning beverages, nutrition, and culinary brands—has been diversifying rapidly. The ice-cream business, powered by the Kwality Wall’s brand, has witnessed strong momentum in urban and semi-urban markets, with increasing innovation in impulse and take-home categories.
By separating the ice-cream division into a standalone entity, HUL intends to provide the business with greater operational autonomy, faster innovation cycles, and clearer capital allocation. Analysts note that this restructuring could enhance competitiveness against global players such as Nestlé and Amul, while allowing Kwality Wall’s (India) Ltd to focus solely on frozen desserts and cold-chain efficiencies.
The move also aligns with Unilever’s global restructuring initiatives, where similar demergers have created independent, focused businesses in high-growth categories.
HUL’s Company Secretary Radhika Shah confirmed the sanction and reiterated the company’s commitment to transparent compliance under SEBI Listing Regulations. A certified copy of the NCLT order is awaited.
Market experts believe that the demerger could lead to value unlocking for shareholders, potentially paving the way for a future listing or strategic partnership. For consumers, it may translate into more localized product innovation and improved distribution in India’s growing frozen-food segment.
With this decision, HUL continues to demonstrate its capability to adapt to evolving market conditions and consumer preferences while maintaining its leadership in India’s FMCG landscape.