Hindustan Unilever Limited (HUL) announced that the National Company Law Tribunal (NCLT), Mumbai Bench, has sanctioned its scheme of arrangement for the demerger of its Ice Cream Business, including Kwality Wall’s (India) Limited. The approval marks a key milestone in HUL’s ongoing restructuring to create more focused and agile business verticals.
Details of the Scheme
Approved under Sections 230 to 232 of the Companies Act, 2013, the scheme enables the transfer of HUL’s Ice Cream Business to Kwality Wall’s (India) Limited, a wholly owned subsidiary. The restructuring aims to enhance operational efficiency and drive focused growth within the ice cream segment.
The approval follows HUL’s initial filing dated September 18, 2025, and completes a critical legal step in the demerger process.
Effective and Appointed Dates
As per the scheme, the Effective Date will be the first calendar day of the month following the fulfilment of all conditions specified in Clause 20 of the arrangement. The Appointed Date will coincide with the Effective Date. HUL will notify stock exchanges once the necessary formalities are completed and the certified copy of the NCLT order is received.
Strategic Rationale
The demerger is expected to allow HUL and Kwality Wall’s (India) Limited to operate with sharper strategic focus and greater autonomy. The move will help both entities pursue independent growth trajectories, improve resource allocation, and potentially unlock higher shareholder value through specialised management of their respective businesses.
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