Latest news with #RiteshTiwari
Mint
4 days ago
- 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
Time of India
31-07-2025
- Business
- Time of India
HUL lowers prices of tea, homecare products but goes for hike in skincare segment
HUL has slashed prices of products in categories such as tea and homecare products due to lower commodity prices and competitive pressure, but raised the prices in the skincare segment on account of rising palm oil prices. The leading FMCG maker is keeping an eye on the price movements of palm and palm derivatives, a key input for its skin cleansing products, which are softening and will pass on the benefits to the consumers as it has done in other segments as tea, HUL CFO Ritesh Tiwari said in an earnings call. Explore courses from Top Institutes in Please select course: Select a Course Category MCA MBA Design Thinking CXO Data Science Digital Marketing Degree others Finance Project Management Management healthcare Technology Others Artificial Intelligence Data Analytics PGDM Data Science Operations Management Public Policy Product Management Leadership Skills you'll gain: Programming Proficiency Data Handling & Analysis Cybersecurity Awareness & Skills Artificial Intelligence & Machine Learning Duration: 24 Months Vellore Institute of Technology VIT Master of Computer Applications Starts on Aug 14, 2024 Get Details "Skin cleansing has seen a material increase in the last 6-12 months, in terms of palm and palm oil derivatives. Because of that, we have taken sequential price increases," he said. Going forward, HUL is seeing "some softening in palm and palm derivatives". "It remains volatile, so we will keep watching how that unfolds," Tiwari said, adding, "We will stay true to the principle of replenishment pricing when it comes to tea or, for that matter, when it comes to skin cleansing." Live Events The FMCG leader further said like previous quarters, the rural market has continued to grow ahead of urban markets in the June quarter, though urban markets have also improved sequentially and expects this recovery to be sustained. "Rural is ahead of urban, but urban has also improved. We have seen improvement and gradual recovery of the urban market," he said, adding, "We expect this recovery to be sustained." Factors such as lower inflation, improved liquidity in the country, taxation relief the government gave in the Budget, help urban areas to recover, he said. Tiwari said HUL's gross margins will improve, and invest that improvement in gross margin back into the business. The company will hold margins of 22 per cent for the next few quarters. Tiwari said the 25 per cent additional tariff imposed by the Trump administration on imports from India will have an "insignificant" impact on the company, as HUL has a very small amount of exports to the US. "So the impact is insignificant. Now that's the direct impact, the indirect impact of tariffs and what it happens in terms of the economy, etc, I think that's an area which we have to wait and watch as to how it unfolds, and as and when required, we take appropriate actions to ensure that our business keeps improving our performance," he said. On the outlook, HUL said the growth guidance remains unchanged. "We expect the first half of this financial year to be better than the second half of last financial year. If commodity prices stay within the current range, we anticipate low single-digit price growth," said Tiwary. Updating the progress of the demerger of the ice-cream business, Tiwari said a meeting for HUL shareholders will be considered to approve the demerger scheme on August 12, as per the direction of the National Company Law Tribunal (NCLT). Over direct-to-consumer (D2C) skincare brand Minimalist, HUL said it, along with the founders, is now working closely to chart the future course of growth trajectory of the company.
News18
14-07-2025
- Business
- News18
Stocks To Watch: HCL Tech, DMart, Tata Tech, Siemens, Ola Electric, HUL, And Others
Last Updated: Stocks to watch: Shares of firms like HCL Tech, DMart, Tata Tech, Siemens, Ola Electric, HUL, and others will be in focus on Monday's trade Stocks to Watch on July 14, 2025: Indian stock markets ended lower on Friday, falling over half a percent amid weak global cues and profit-booking. In today's session, several stocks will be on investors' radar due to earnings announcements, corporate updates, and other key developments. Shares of HCL Tech, Tata Tech and Ola will be in focus as the companies will announce their first quarter results. DMart operator Avenue Supermarts reported a muted June quarter (Q1FY26) performance, with net profit flat at Rs 773 crore compared to Rs 774 crore a year ago. The result missed Bloomberg consensus estimates of Rs 883 crore, impacted by rising competition and margin pressures despite revenue growth. Lodha Developers Lodha Developers said it is targeting bookings worth over Rs 46,000 crore over the next two years, a 43% increase from the Rs 32,100 crore achieved in FY24 and FY25 combined. The company sees robust demand momentum ahead in the real estate sector. Reliance Industries (RIL) Mukesh Ambani-led Reliance Industries is set to announce its financial results for the June quarter on Friday, July 18. Investors will be watching closely for updates across its key businesses, including telecom, retail, and energy. JSW Paints has launched an open offer worth ₹3,929 crore to acquire up to 25.2% stake in Akzo Nobel India. The offer price is set at ₹3,417.77 per share. Hindustan Unilever (HUL) HUL clarified that Ritesh Tiwari continues to serve as Executive Director – Finance, IT, and Chief Financial Officer of the company, reaffirming continuity in leadership. Siemens Siemens India has secured two orders from Maha Metro worth a total of ₹773 crore. The orders include supply and commissioning of key systems for metro rail operations. DLF DLF announced a full and final settlement of its legal and arbitration disputes with Hubtown, Chinsha Property, TFDRL (Twenty Five Downtown Realty), and others. As part of the agreement, DLF will receive settlement payments in tranches over two years, with ₹100 crore already received. Inox Wind Inox Wind Ltd. and Inox Wind Energy Ltd. (IWEL) have completed their merger, aimed at simplifying the group structure and strengthening its balance sheet. The merger eliminates Rs 2,050 crore of intra-group debt. A fresh listing of the consolidated entity is expected in the coming week. Awfis Space Solution Coworking firm Awfis is diversifying into the furniture manufacturing and sales business to reduce costs and broaden its revenue base. Shareholders have approved the new vertical, according to a regulatory filing. Amber Enterprises The board of Amber Enterprises has approved a fundraising plan of up to Rs 2,500 crore through the issuance of various securities. The company is exploring all permissible financial instruments for this capital raise. Neogen Chemicals Neogen Chemicals announced it will raise up to Rs 200 crore by issuing secured, listed, redeemable non-convertible debentures (NCDs) on a private placement basis, as approved by its board. Ramco Cements Ramco Cements reported that it has realised Rs 24.05 crore from the sale of non-core assets, including Rs 19.77 crore from equity investments and Rs 4.28 crore from land sales. The total value of such disposals now stands at Rs 483.84 crore. NCC Ltd NCC has secured a Rs 2,269 crore contract (excluding GST) from the Mumbai Metropolitan Region Development Authority (MMRDA) for civil construction work on Mumbai Metro Line 6 (Package 1-CA-232), the company informed the stock exchanges. Ajmera Realty reported a weak Q1FY26 operational performance. Sales value dropped 65% YoY to Rs 108 crore, while carpet area sold fell 52% to 63,244 sq. ft. The sequential decline in sales was attributed to delayed project launches and low inventory availability. Disclaimer:Disclaimer: The views and investment tips by experts in this report are their own and not those of the website or its management. Users are advised to check with certified experts before taking any investment decisions. About the Author Aparna Deb Aparna Deb is a Subeditor and writes for the business vertical of She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, More First Published: 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.
Economic Times
14-07-2025
- Business
- Economic Times
Stocks in news: HCL Tech, Tata Tech, DMart, Siemens, Ola Electric
Markets traded under pressure on Friday and lost over half a percent, dragged down by weak cues. In today's trade, shares of HCL Tech, Tata Tech, DMart, Siemens, Ola Electric among others will be in focus due to various news developments and first quarter Tech, Tata Tech, Ola ADVERTISEMENT Shares of HCL Tech, Tata Tech and Ola will be in focus as the companies will announce their first quarter results. DMart DMart reported a standalone net profit of Rs 830 crore in the first quarter. This was up just 2% from Rs 812 crore posted in the previous year quarter. RIL Mukesh Ambani-owned Reliance Industries (RIL) will announce its June quarter earning on Friday, July 18. Titagarh Rail Titagarh Rail Systems has acquired around 40 acres of land on lease for Rs 126 crore from the West Bengal government, a move that will help the company ramp up production of Vande Bharat coaches and metro cars at its Uttarpara facility in Hooghly district. DLF DLF Chairman Rajiv Singh received remuneration of Rs 36.65 crore after a hike of 34% in the last fiscal year, following better performance of the company, according to its latest annual report. ADVERTISEMENT Azko Nobel JSW Paints launches Rs 3,929 crore open offer to acquire up to 25.2% stake in Akzo Nobel at Rs 3,417.77 per share HUL HUL said Ritesh Tiwari continues to be the Executive Director, Finance, IT & Chief Financial Officer of the company ADVERTISEMENT IIFL Home Finance Housing finance player IIFL Home Finance announced on Saturday that it has secured $100 million from the Beijing-based Asian Infrastructure Investment Bank (AIIB). Siemens Siemens secured two separate orders worth Rs 773 crore from Maha Metro. (You can now subscribe to our ETMarkets WhatsApp channel)
Time of India
14-07-2025
- Business
- Time of India
Stocks in news: HCL Tech, Tata Tech, DMart, Siemens, Ola Electric
Markets traded under pressure on Friday and lost over half a percent, dragged down by weak cues. In today's trade, shares of HCL Tech , Tata Tech, DMart, Siemens , Ola Electric among others will be in focus due to various news developments and first quarter Tech, Tata Tech, Ola Shares of HCL Tech, Tata Tech and Ola will be in focus as the companies will announce their first quarter results. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Pensioners Can Buy These Electric Cars in Kuala Terengganu - See Prices Here! Electric Cars | Search Ads Search Now Undo DMart DMart reported a standalone net profit of Rs 830 crore in the first quarter. This was up just 2% from Rs 812 crore posted in the previous year quarter. RIL Mukesh Ambani-owned Reliance Industries (RIL) will announce its June quarter earning on Friday, July 18. Titagarh Rail Titagarh Rail Systems has acquired around 40 acres of land on lease for Rs 126 crore from the West Bengal government, a move that will help the company ramp up production of Vande Bharat coaches and metro cars at its Uttarpara facility in Hooghly district. Live Events DLF DLF Chairman Rajiv Singh received remuneration of Rs 36.65 crore after a hike of 34% in the last fiscal year, following better performance of the company, according to its latest annual report. Azko Nobel JSW Paints launches Rs 3,929 crore open offer to acquire up to 25.2% stake in Akzo Nobel at Rs 3,417.77 per share HUL HUL said Ritesh Tiwari continues to be the Executive Director, Finance, IT & Chief Financial Officer of the company IIFL Home Finance Housing finance player IIFL Home Finance announced on Saturday that it has secured $100 million from the Beijing-based Asian Infrastructure Investment Bank (AIIB). Siemens Siemens secured two separate orders worth Rs 773 crore from Maha Metro.
