- HUL is demerging its ice cream business, Kwality Wall’s, into a separate listed entity.
- The division generates ₹2,000 crore in annual sales, making it one of India’s largest ice cream businesses.
- Analysts predict 15-20% growth potential and improved management focus post-demerger.
Hindustan Unilever Ltd. (HUL) has announced plans to demerge its ice cream business, represented by Kwality Wall’s, into a separate listed company. With annual sales of ₹2,000 crore, the division is poised to become India’s largest listed ice cream company.
Analysts see strong growth potential, with Nuvama Institutional Equities projecting 15-20% CAGR. The move will allow focused management, enabling better strategies tailored to the unique ice cream market. HUL’s ice cream EBIT margins currently stand at 5-9%, compared to industry peer Havmor’s 11.2%.
This decision aligns with parent company Unilever Plc’s global strategy to separate its ice cream business and streamline operations, which included workforce reductions earlier this year.
