Business News: Hindustan Unilever Announces The Demerge of Kwality Walls, Will Become a Separate Entity

Business News: Hindustan Unilever Limited (HUL) has decided to demerge its ice cream company, Kwality Walls, and float it separately on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). This proposal, accepted at the company’s board meeting, states that HUL shareholders will receive shares in Kwality Walls India Limited proportionate to their current HUL ownership. Following the demerger, Kwality Walls India Limited will be an independent, publicly traded company with well-known global ice cream brands such as Walls, Cornetto, and Magnum.

Why Demerge is Important?

According to HUL, the ice cream business will generate Rs 1,595 crore in revenue by March 2024, accounting for only 2.7% of the company’s overall business. Despite its limited contribution, HUL believes that the separation will open up new chances for market expansion and recognition. Kwality Walls India Limited expressed confidence in its ability to sustain its leadership position in the ice cream business, citing a focus on innovation and a strong brand portfolio.