Hindustan Unilever Ltd (HUL), India’s leading FMCG company, is separating its ice-cream business into a new, independent company called Kwality Wall’s (India) Limited (KWIL). The move aims to allow the ice-cream unit to focus on growth while giving HUL shareholders a direct stake in the new company.
The company has announced 1 December 2025 as the effective date for the demerger. The record date for eligibility to receive shares in Kwality Wall’s is 5 December 2025. Shareholders holding HUL stock on that day will receive one Kwality Wall’s share for every HUL share they own.
Post-demerger, the Unilever Group will retain 61.9% of the new company, with the rest distributed among HUL shareholders. Kwality Wall’s will inherit HUL’s ice-cream assets, including five manufacturing plants and over 1,200 employees. The company’s total assets are valued at more than ₹900 crore.
HUL says the ice-cream business operates very differently from its other FMCG segments, requiring specialized cold chain logistics and distribution. By creating a separate entity, Kwality Wall’s can make faster decisions, pursue market opportunities, and innovate in line with consumer trends.
HUL’s stock rose following the announcement, reflecting investor optimism. The current share price is approximately ₹2,429.00 on the NSE today. Analysts believe the demerger could unlock additional value for shareholders, as the ice-cream business will now have its own board, management, and market visibility.
Once Kwality Wall’s is listed on the stock exchanges, its market price will be determined independently. HUL management expects the spin-off to strengthen both companies, offering shareholders clearer choices and a focused growth path for the ice-cream business.
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