Hindustan Unilever Limited (HUL), one of India's largest fast-moving consumer goods companies, announced that the demerger of its ice cream business into a separate entity, Kwality Wall's (India) Ltd. (KWIL), will take effect from December 1, 2025. The HUL board, in a meeting held on Tuesday, fixed December 5, 2025, as the record date to ascertain eligible shareholders entitled to receive equity shares in the new company. This move follows the board's initial approval of the demerger scheme in January 2025, with subsequent nods from the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) in May 2025, and overwhelming shareholder approval in August 2025.

Under the approved share entitlement ratio, HUL shareholders will receive one fully paid-up equity share of face value Rs 1 in KWIL for every one equity share they hold in HUL as of the record date. The demerger aims to create a focused, independent ice cream business that will operate with greater agility and market responsiveness. KWIL, which houses popular brands such as Cornetto, Magnum, Feast, and Creamy Delight, is expected to list on the stock exchanges in the fourth quarter of the current financial year, pending final regulatory clearances from the Securities and Exchange Board of India (SEBI) and other authorities.

The separation aligns with HUL's broader strategy to streamline its portfolio by spinning off non-core segments, allowing the parent company to concentrate on its core FMCG operations like personal care, home care, and foods. HUL has assured that the transaction will be executed on a tax-neutral basis for shareholders, with no immediate impact on their existing holdings in the company. The ice cream division, which contributed around 3-4% to HUL's overall revenue in FY24, has shown steady growth amid rising demand for premium frozen treats in urban and semi-urban markets.

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Market analysts view the demerger positively, as it could unlock value for investors by enabling KWIL to pursue tailored growth strategies, including expanded distribution and innovation in the competitive ice cream sector. HUL shares closed marginally higher on Tuesday following the announcement, reflecting investor confidence in the structured exit. As the record date approaches, eligible shareholders are advised to monitor updates on the BSE and NSE portals for allotment details and listing timelines.

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