Latest news with #KwalityWall's
Time of India
6 days ago
- Business
- Time of India
HUL receives shareholder's nod for ice-cream biz demerger
FMCG major HUL has received shareholders' nod to demerge its ice cream business, which owns brands like Kwality Wall's , Cornetto and Magnum , into an independent listed entity. With this, Hindustan Unilever Ltd (HUL) has taken one step closer to its goal to demerge its ice cream business. The majority of its shareholders have voted in favour of the resolution over the "Scheme of Arrangement between Hindustan Unilever Limited, Kwality Wall's", the FMCG major said while sharing the scrutiniser's report. "The Resolution for approval of the Scheme of Arrangement amongst HUL, Kwality Wall's (India) Ltd and their respective shareholders, as set out in the Notice dated 7th July 2025, has been passed by the Members by requisite majority, pursuant to Section 230(6) of the Companies Act, 2013, through remote e-voting and e-voting at the Meeting," it said. HUL has called for a meeting of its shareholders as per the directions of the National Company Law Tribunal (NCLT). According to the report, 99.99 per cent of the votes polled were cast in favour of the proposal. The process was virtually conducted through a remote e-voting facility on Tuesday. Last month, the CFO of the company said he expects the demerger process to be completed in the current fiscal and subsequent listing of the new entity on the exchanges. All existing shareholders of the FMCG major will receive shares in the new entity in proportion to their shareholding in HUL in a ratio of 1:1. This demerger follows the decision of its global parent entity, Unilever's global separation from the ice-cream business.
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Business Standard
6 days ago
- Business
- Business Standard
Hindustan Unilever gets shareholders' nod for ice-cream business demerger
FMCG major HUL has received shareholders' nod to demerge its ice cream business, which owns brands like Kwality Wall's, Cornetto and Magnum, into an independent listed entity. With this, Hindustan Unilever Ltd (HUL) has taken one step closer to its goal to demerge its ice cream business. The majority of its shareholders have voted in favour of the resolution over the "Scheme of Arrangement between Hindustan Unilever Limited, Kwality Wall's", the FMCG major said while sharing the scrutiniser's report. "The Resolution for approval of the Scheme of Arrangement amongst HUL, Kwality Wall's (India) Ltd and their respective shareholders, as set out in the Notice dated 7th July 2025, has been passed by the Members by requisite majority, pursuant to Section 230(6) of the Companies Act, 2013, through remote e-voting and e-voting at the Meeting," it said. HUL has called for a meeting of its shareholders as per the directions of the National Company Law Tribunal (NCLT). According to the report, 99.99 per cent of the votes polled were cast in favour of the proposal. The process was virtually conducted through a remote e-voting facility on Tuesday. Last month, the CFO of the company said he expects the demerger process to be completed in the current fiscal and subsequent listing of the new entity on the exchanges. All existing shareholders of the FMCG major will receive shares in the new entity in proportion to their shareholding in HUL in a ratio of 1:1. This demerger follows the decision of its global parent entity, Unilever's global separation from the ice-cream business. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
News18
6 days ago
- Business
- News18
HUL receives shareholders nod for ice-cream biz demerger
Agency: New Delhi, Aug 12 (PTI) FMCG major HUL has received shareholders' nod to demerge its ice cream business, which owns brands like Kwality Wall's, Cornetto and Magnum, into an independent listed entity. With this, Hindustan Unilever Ltd (HUL) has taken one step closer to its goal to demerge its ice cream business. The majority of its shareholders have voted in favour of the resolution over the 'Scheme of Arrangement between Hindustan Unilever Limited, Kwality Wall's", the FMCG major said while sharing the scrutiniser's report. 'The Resolution for approval of the Scheme of Arrangement amongst HUL, Kwality Wall's (India) Ltd and their respective shareholders, as set out in the Notice dated 7th July 2025, has been passed by the Members by requisite majority, pursuant to Section 230(6) of the Companies Act, 2013, through remote e-voting and e-voting at the Meeting," it said. HUL has called for a meeting of its shareholders as per the directions of the National Company Law Tribunal (NCLT). According to the report, 99.99 per cent of the votes polled were cast in favour of the proposal. The process was virtually conducted through a remote e-voting facility on Tuesday. Last month, the CFO of the company said he expects the demerger process to be completed in the current fiscal and subsequent listing of the new entity on the exchanges. All existing shareholders of the FMCG major will receive shares in the new entity in proportion to their shareholding in HUL in a ratio of 1:1. This demerger follows the decision of its global parent entity, Unilever's global separation from the ice-cream business. PTI KRH KRH BAL BAL view comments First Published: August 12, 2025, 22:00 IST Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
Mint
07-08-2025
- Business
- Mint
HUL CFO says Kwality Wall's demerger, listing this FY, ice cream biz to grow in double-digits
New Delhi: Hindustan Unilever Ltd (HUL) is pushing ahead with the demerger and listing of its ₹1,800 crore ice cream business, Kwality Wall's (India) Ltd (KWIL), as part of a global separation move by parent Unilever PLC. The process is slated to conclude by Q4FY26, and it will give Kwality Wall's India an independent identity, sharpen operational focus, and allow it to scale faster in the country's fast-growing but underpenetrated ice cream market, Ritesh Tiwari, chief financial officer at HUL, told Mint in an interview. The standalone entity, with brands such as Kwality Wall's, Cornetto, and Magnum, will continue to grow in double-digits over the coming years, he said. Read more: HUL's sunny outlook: Q1 results hint worst is over, but can growth sustain? Parent Unilever PLC had announced its demerger decision on March 19, 2024, citing that move will give Kwality Wall's India an independent identity and operational autonomy, in line with Unilever's view that ice cream operates under a distinct model with limited synergies with other segments. Unilver said the move help it focus on its four core business groups: beauty & wellbeing, personal care, home care, and nutrition. Ice cream has a very different operating model, the company had said. The global separation is expected to be completed in the fourth quarter of 2025. In India, HUL announced its demerger plans for Kwality Wall's in January this year. The mode of separation will be through a court-sanctioned scheme of demerger of the ice cream business, in which the plan is to do a mirror demerger, and then subsequently list the resulting company. 'We are doing a mirror demerger and listing; so every shareholder of Hindustan Unilever will get shares in Kwality Wall's and the share entitlement ratio is 1:1, which implies that for every 1 share held in HUL, the shareholders will get 1 share in Kwality Wall's (India) Ltd," Tiwari said. "We have about 1.2 million shareholders in HUL, of this about 123,000 lakh shareholders hold only 1 share of HUL, so the share entitlement ratio of 1:1 ensures that it is a fair process." When the shares of Kwality Wall's India get listed, its valuation and share price will be determined through an independent price discovery process. Once listed, KWIL will have its independent board of directors and management team, including the chief executive and chief financial officers. All related assets and liabilities, including the five manufacturing locations, a positive working capital, and net assets of over ₹900 crore, will be transferred to KWIL. As part of the move, 1,200 employees will also be transferred to the new, soon-to-be-listed company. The Unilever Group holds 61.9% of the issued and paid-up share capital of HUL. In an agreement earlier this year, The Magnum Ice Cream Co. agreed to acquire all the KWIL shares to be issued to the Unilever Group, which amounts to 61.9% of the new company's share capital, as a result of the demerger. Read more: ITC's growth is lit up, but its margin lacks the spark The demerger process has received preliminary approvals, with a shareholder meeting scheduled for 12 August. Market opportunity According to Tiwari, the listing will help create a more focused entity capable of accelerating growth in India's ice cream market, which is estimated to grow to over $5 billion by FY25 from $3.4 billion in FY23. The ice cream business has a "distinct business model," with limited synergies with the rest of HUL due to its separate go-to-market structure. It will be independent from the very first day. 'When we set up the company, on day one, we are equipping it with everything it needs. There are various things that determine a successful business being set up. First, of course, is the people and the management of KWIL; we will have an experienced team to run this business. Then brands and capabilities, including the entire IT infrastructure. The business will include brands, such as Kwality Wall's, Cornetto, and Magnum, which already have strong consumer traction, supported by a distribution network of over 2,50,000 cabinets, 20 warehouses, and 5 manufacturing sites," said Tiwari. Unilever sells five of the top 10 selling global ice cream brands, including Wall's, Magnum and Ben & Jerry's. The ice cream business is highly capital intensive, and Tiwari said that KWIL will be set up with "net positive assets" and will not be burdened with loans. 'Today, the business has net assets—a little over ₹900 crore. These will be transferred to KWIL, as part of the demerger. On day one, the balance sheet will have its own working capital, which is positive working capital, so inventory and receivables will belong to them. We are setting this company up with net positive assets. Whatever is the peak working capital the business will require for the next season, we are also funding that as part of the demerger," he added. Tiwari said the company is confident of its growth trajectory. "In the last decade, our ice cream business has grown double-digit. I don't see reason why we cannot continue to do that," he said. India's per capita ice cream consumption remains low, 600 ml on an average, compared to countries such as Turkey at 5 liters. In metropolitan cities, the per capita consumption is four to five times more. "There's a huge potential for India, the overall headroom to grow because of a lower penetration, lower consumption," he said. KWIL will continue to pay royalty to The Magnum Ice Cream Co, in line with HUL's royalty arrangement with the parent company Unilever. 'We have not disclosed this because it's a total aggregate number that we have. As HUL, we pay 3.45% as royalty, which includes all the components of royalty for trademark and royalty for technology and our central services. The ice cream business currently has an arrangement as a part of this; it will take the same arrangement as we have. The 3.45% is a weighted average--different brands have different numbers as part of that. So, the current arrangement that we have will transfer along with this to Kwality Walls India," Tiwari said. Read more: IPO season beckons: Elevation Capital lines up 9 startups as exit pressures mount While HUL's broader food and refreshment business works at an operating margin of 16-18%, the ice cream segment currently operates at "low single digits" because it is a high capital intensive and a low margin business. 'The focus will be to first scale up the business. The benefit of that operating leverage will help further improve the margin profile of the business, " he said. Tiwari said a dedicated management team will be able to deploy "agile and nimble" strategies to capitalize on India's low per capita ice cream consumption. HUL's ice cream business competes with brands such as Amul, local dairy players, and new-age homegrown brands. The company plans to explore various growth strategies, including organic expansion, leveraging global brands like Ben & Jerry's, and potential "bolt-on acquisitions". Commenting on the overall demand environment for HUL, Tiwari said that growth remains a priority for the maker of Dove soaps and Knorr soups. 'For us, unblinking—growth is the first priority. In the previous quarter, we called out that we will bring our margin guidance down from the 23-24% range to 22-23% because we believe it's the right time to step up investments to drive growth," he said. 'We are at the same margin band, which we've spoken about so it's very clear that investment is required in today's climate to drive growth." Last week, HUL reported a 4% year-on-year rise in its June quarter consolidated volumes. Its net profit rose 8% to ₹2,732 crore on a 4% increase in sales to ₹15,747 crore. Read more: India's ₹2 trillion paneer rush, and a battle with fakes
