Hindustan Unilever Limited (HUL) has received approval from the National Company Law Tribunal (NCLT) for the demerger of its Ice Cream Business Undertaking. The approval was granted on October 30, 2025. As part of the arrangement, Kwality Wall’s (India) Limited will become the resulting company. HUL will unlock value for shareholders and allow focused growth.
Demerger Approved
The National Company Law Tribunal (NCLT), Mumbai Bench, has sanctioned the Scheme of Arrangement for the demerger of the Ice Cream Business Undertaking from Hindustan Unilever Limited (HUL). The approval was formalized through an order issued on October 30, 2025.
Scheme Details
The arrangement involves the demerger of HUL’s Ice Cream Business Undertaking to Kwality Wall’s (India) Limited. This decision enables both entities to sharpen their focus on respective business strategies. The NCLT order also addresses some typographical and clerical errors. A rectification order was issued on November 6, 2025, to correct these issues.
Rationale
The demerger aims to create an independent listed ice cream company, offering better flexibility and growth opportunities. This move intends to unlock value for HUL shareholders, allowing them to stay invested in the ice cream business. HUL will focus on high-growth segments. The Scheme facilitates a smooth transition.
Share Entitlement
For every 1 equity share of HUL, shareholders will receive 1 equity share in Kwality Wall’s (India) Limited. This share entitlement ratio ensures that shareholders maintain their investment in the demerged ice cream business.
Source: BSE
