**Kwality Wall’s India Set for Independent Identity by Q4FY26**
Kwality Wall’s India is on track to achieve an independent identity by the fourth quarter of FY26, according to Ritesh Tiwari, Chief Financial Officer at Hindustan Unilever Limited (HUL). This strategic move aims to enhance operational focus and accelerate growth in India’s burgeoning yet underdeveloped ice cream market. Tiwari emphasized that the standalone entity, which includes popular brands like Kwality Wall’s, Cornetto, and Magnum, is expected to maintain double-digit growth in the coming years.
The decision for the demerger was announced by Unilever PLC on March 19, 2024, highlighting the need for Kwality Wall’s India to operate autonomously, given the distinct business model of the ice cream segment compared to other product lines. Unilever aims to concentrate on its four core business areas: beauty and wellbeing, personal care, home care, and nutrition, recognizing that ice cream operates under a unique framework with limited synergies with other categories.
The global separation is anticipated to finalize in the fourth quarter of 2025, while HUL revealed its plans for the demerger of Kwality Wall’s in January of this year. The separation will occur through a court-sanctioned demerger scheme, which will involve a mirror demerger, allowing shareholders of Hindustan Unilever to receive shares in the new entity. Tiwari confirmed that the share entitlement ratio will be 1:1, meaning that for every share held in HUL, shareholders will receive one share in Kwality Wall’s (India) Ltd. This approach ensures fairness, especially for the approximately 123,000 shareholders who own only one share of HUL.
Upon listing, the valuation and share price of Kwality Wall’s India will be determined through an independent price discovery process. The new company will establish its own board of directors and management team, including a chief executive and chief financial officer. All relevant assets and liabilities, including five manufacturing facilities, positive working capital, and net assets exceeding ₹900 crore, will be transferred to the new entity. Additionally, 1,200 employees will transition to the soon-to-be-listed company.
Unilever Group currently holds 61.9% of HUL’s issued and paid-up share capital. Earlier this year, an agreement was reached for The Magnum Ice Cream Co. to acquire all shares of Kwality Wall’s India that will be issued to the Unilever Group as part of the demerger.
**FAQ**
*What is the expected timeline for the demerger of Kwality Wall’s India?*
The demerger process is expected to conclude by the fourth quarter of FY26, with the global separation anticipated to be finalized in the fourth quarter of 2025.