Kwality Walls has entered into a three-year intellectual property agreement with Magnum IP Holdings B.V., setting a royalty rate of 0% until 31st March 2027 to support planned investments and stabilisation efforts following the demerger of its ice cream business. The agreement, ending on 31st March 2029, stipulates a royalty rate of 1% of turnover, defined as the net sale of licensed products plus applicable taxes, for FY 2027-28 and FY 2028-29 respectively. The royalty moratorium is intended to aid the company's revised strategic direction and financial position as it navigates the competitive landscape post-demerger.

The Board of Directors approved the proposal during its meeting held on 29th June 2026. The agreement restricts Kwality Walls' use of the licensed intellectual property to the sale of products within the Indian jurisdiction and mandates the maintenance of agreed standards for trademarks and product quality. Magnum IP Holdings B.V. and Kwality Walls form part of The Magnum Ice Cream Company group, classifying the transaction as a Related Party Transaction negotiated on an arm's length basis. The Board determined the arrangement aligns with arm's length principles based on an independent external assessment and oversight from the Audit Committee.

In personnel changes, the Board announced the cessation of Mr. Rohit Jhunhunwala as Senior Management Personnel of the company, effective from 1st July 2026, consequent to his assuming a new leadership role. Separately, the Board appointed Ms. Dimple Lalwani as the Internal Auditor of the company for FY 2026-27, effective from the same date. Ms. Lalwani brings over 13 years of global experience in integrated audits and regulatory compliance, holding certifications as a Certified Internal Auditor and Certified Information Systems Auditor.

Key Agreement Terms

The new Intellectual Property Agreement supersedes the trademark and technology arrangement previously novated to Kwality Walls pursuant to the Scheme of Demerger. It also replaces the transitional sub-licensing arrangement granted by Unilever IP Holdings B.V. to Kwality Walls. The Board meeting commenced at 04:30 P.M. (IST) and concluded at 05:32 P.M. (IST).

Magnum Ice Cream Company HoldCo 1 Netherlands B.V. has disclosed a substantial shareholding in Kwality Wall's (India) Limited , holding 1,45,44,12,858 shares as of March 31, 2026. The disclosure, submitted under Regulation 31 of the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, confirms that the entity maintains a significant position in the company without any financial encumbrance on the shares.

The filing, addressed to the Audit Committee of Kwality Wall's (India) Limited and the stock exchanges, explicitly states that none of the shares held are covered under any pledge or encumbrance, either directly or indirectly. This status has remained consistent since the last disclosure made by the entity.

Shareholding Details

The disclosure provides a clear snapshot of the holding position as of the specified date. The table below summarizes the key details of the shareholding:

Regulatory Compliance

The disclosure was made to comply with the requirements of Regulation 31 of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. This regulation mandates the disclosure of substantial shareholding to ensure transparency in the market. The communication was formally submitted by Dilsad Cagman, the Authorised Signatory for Magnum Ice Cream Company HoldCo 1 Netherlands B.V., on April 7, 2026.