Hindustan Unilever Limited (HUL), a leading fast-moving consumer goods (FMCG) company in India, has made a strategic move towards the demerger of its ice cream business. The company has officially announced the incorporation of a wholly owned subsidiary (WOS) under the name Kwality Wall’s (India) Limited (KWIL), marking a significant step in its business restructuring plans.

Purpose of Incorporation

The incorporation of KWIL aligns with HUL’s Board-approved plan to evaluate the separation of its ice cream business into an independent, listed entity. This move reflects the company’s intention to streamline operations, enhance focus on specific business segments, and unlock value for its stakeholders.

As per the official communication, KWIL will focus on the manufacture, marketing, distribution, and sale of:

• Ice creams
• Frozen desserts (dairy and non-dairy)
• Frozen snacks, vegetables, and processed foods

Key Details of Kwality Wall’s (India) Limited

1. Date of Incorporation: January 10, 2025
2. Corporate Identity Number (CIN): U10505MH2025PLC437886
3. Authorized Share Capital: ₹250 Crores, divided into 250 crore equity shares of ₹1 each.
4. Initial Subscription: ₹5 Crores (5 crore equity shares of ₹1 each), fully owned by HUL.
5. Ownership: HUL holds 100% shareholding in KWIL.

Strategic Rationale

The demerger of the ice cream business is expected to:

• Foster independent decision-making in a highly competitive market.
• Allow greater operational agility for KWIL to cater to consumer needs.
• Position KWIL as a leading player in the ice cream and frozen food market.

This step builds on HUL’s commitment to optimize its business portfolio and deliver sustainable growth.

Compliance and Regulatory Aspects

In line with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, HUL has disclosed the incorporation details, ensuring transparency with its stakeholders. Key regulatory disclosures include:

• Confirmation of no governmental or regulatory approvals required for the incorporation.
• Compliance with SEBI norms, ensuring the transaction is at arm’s length.

About Hindustan Unilever

HUL has been at the forefront of India’s FMCG market, offering a wide range of products across categories like personal care, home care, and foods. The creation of Kwality Wall’s (India) Limited underscores its adaptability and focus on meeting evolving market demands.

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