The company stated that KWIL has been incorporated to engage in the manufacture, marketing, distribution and sale of ice creams, frozen desserts, frozen snacks, frozen vegetables and frozen processed food of all kinds
For the proposed demerger of the company’s ice cream business, Hindustan Unilever (HUL), a fast-moving consumer goods (FMCG) major incorporated a new subsidiary Kwality Wall’s on Friday. The company said that it will own 100 per cent of the issued and subscribed share capital of the wholly owned subsidiary Kwality Wall’s (India) or KWIL at the time of incorporation.
“As mentioned in the Company’s letter dated 25th November 2024, KWIL has been incorporated for the purpose of the proposed demerger of the Company’s Ice Cream business, which is currently under evaluation by the Board of the Company,” the company informed in a regulatory filing.
The company added that 100 per cent subscription to the initial share capital of Rs 5,00,00,000 (Rs Five Crore) will be divided into 5,00,00,000 equity shares of face value Rs one each. Earlier, the board of HUL had decided to de-merge the ice cream business. This was based on the recommendation of the Independent Committee formed by the company in September 2024.
In its statement, the company added that KWIL has been incorporated on 10th January 2025, with the main object of engaging in the manufacture, marketing, distribution and sale of ice creams, frozen desserts (both dairy and non-dairy), frozen snacks, frozen vegetables and frozen processed food of all kinds.
The independent committee said that the company’s ice cream business has a different operating model, including cold chain infrastructure as well as a distinct, channel landscape. It said that this limits synergies with the rest business of the company.
