Unilever's ice cream demerger sanctioned by NCLT

Hindustan Unilever Limited (HUL) has received the sanction order from the National Company Law Tribunal (NCLT), Mumbai Bench, for the Scheme of Arrangement to demerge its Ice Cream Business Undertaking to Kwality Wall's (India) Limited. The NCLT order was pronounced on October 30, 2025, with a rectification order issued on November 6, 2025, addressing minor errors.

The demerger, involving Hindustan Unilever as the demerged company and Kwality Wall's (India) Limited as the resulting company, aims to create an independent listed ice cream company. This move follows Unilever PLC's global strategy to separate its ice cream business to enhance focus and value creation. The boards of directors of both companies approved the scheme on January 22, 2025.

Under the scheme, for every one equity share of face value of Re. 1/- fully paid up held in the demerged company, shareholders will receive one equity share of face value of Re. 1/- credited as fully paid up in the resulting company, establishing a 1:1 share entitlement ratio.