National Company Law Tribunal Approves Hindustan Unilever's Ice Cream Business Demerger to Kwality Walls (India) Ltd

Consumer Products

30th October 2025, 5:09 PM

National Company Law Tribunal Approves Hindustan Unilever's Ice Cream Business Demerger to Kwality Walls (India) Ltd

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Stocks Mentioned :

Hindustan Unilever Limited

Short Description :

The National Company Law Tribunal (NCLT) has approved Hindustan Unilever Limited's (HUL) plan to demerge its ice cream business into a separate entity named Kwality Walls (India) Limited. This strategic move aligns with parent company Unilever's global Growth Action Plan (GAP) and aims to accelerate growth by allowing the ice cream division to operate independently. Following this, Unilever will focus on four core business groups: beauty and well-being, personal care, home care, and nutrition.

Detailed Coverage :

The National Company Law Tribunal (NCLT), Mumbai Bench, has officially sanctioned the Scheme of Arrangement for the demerger of Hindustan Unilever Limited's (HUL) ice cream business undertaking into Kwality Walls (India) Limited. This significant corporate restructuring was approved by the NCLT on October 30, 2025, following earlier approvals from the tribunal to convene a shareholder meeting for the demerger proposal. The demerger is being executed under Sections 230 to 232 of the Companies Act, 2013.

This separation is a key component of Unilever's global Growth Action Plan (GAP). By spinning off its ice cream division, Unilever aims to simplify its structure and enhance focus on its four main business groups: beauty and well-being, personal care, home care, and nutrition. The demerger is expected to allow the independent entity, Kwality Walls (India) Limited, to pursue tailored growth strategies, optimize capital allocation, and achieve greater operational efficiency.

Impact This demerger is a strategic move that could unlock value for shareholders by allowing for more focused management and investment in the ice cream business, separate from HUL's broader FMCG portfolio. Investors will closely monitor the financial performance and market valuation of both the demerged entity and the remaining HUL business. Rating: 8/10

Difficult Terms: National Company Law Tribunal (NCLT): A specialized judicial body in India established to handle corporate law matters, including mergers, acquisitions, and insolvency. Demerger: A corporate restructuring process where a company splits into two or more new entities. The original company may continue to exist or cease to exist. Scheme of Arrangement: A legal framework under the Companies Act that allows for corporate restructuring, such as mergers, demergers, or amalgamations, subject to court and shareholder approval. Growth Action Plan (GAP): A strategic plan by a company, in this case Unilever, to stimulate and achieve business growth through specific initiatives.