Hindustan Unilever announced a material update regarding the scheme of arrangement involving Kwality Wall’s (India) Limited (KWIL). KWIL’s focus is on becoming India’s leading ice cream company, leveraging Unilever’s ice cream legacy. KWIL aims to grow faster than the market and drive profitability, improve distribution and capacity, and enhance free cash flow and ROCE. The company will focus on strategic pricing and supply chain investments.
Strategic Pivots for Growth
Kwality Walls (India) Limited (KWIL) is implementing strategic pivots to become India’s #1 Ice Cream Company. Key changes include transforming into an ice cream expert-led organization, diversifying its portfolio with standout in-home offerings, and implementing strategic pricing across various price points. These efforts aim to enhance KWIL’s market position and drive revenue growth.
Growth Strategy and Pillars
KWIL is focused on accelerating growth through strategic pivots, building a strong snacking portfolio, leveraging global brand access, and introducing innovative formats and technologies. The company aims to grow by expanding into all regions of India and better penetrating existing markets. KWIL will focus on strategic pricing and supply chain investments to improve market share.
Financial and Operational Highlights
KWIL’s value creation framework includes growing ahead of the market, driving profitability expansion, expanding distribution, and improving capacity and productivity. It focuses on optimizing costs through strategic pricing, supply chain investments, and efficient operations. Key strategies include premiumization, strategic supplier partnerships, and leveraging technology to enhance productivity.
Strategic Initiatives
KWIL aims to sustain volume-led growth momentum by offering exciting products at various price points, focusing on premiumization and indulgence, ensuring ice cream availability, and improving route-to-market capabilities. The company is expanding its portfolio with global and in-licensed brands and expanding its reach through digital channels to better penetrate the market.
Source: BSE