Hindustan Unilever Limited (HUL), a leading FMCG company in India, has received approval to demerge its ice cream business to Kwality Wall's (India) Limited (KWIL). The company has set December 5, 2025, as the record date for this corporate action, following approval from the National Company Law Tribunal (NCLT).

Key Details of the Demerger

Implications for Shareholders

The demerger represents a strategic move by HUL to separate its ice cream business into a distinct entity. Shareholders of HUL will receive shares in the newly formed Kwality Wall's (India) Limited on a one-to-one basis. This means for every share of HUL held, shareholders will receive one share of KWIL.

It's important to note that KWIL shares will be allotted only in dematerialized form. Shareholders holding physical shares of HUL are required to ensure their KYC (Know Your Customer) compliance is up to date to receive the new shares.

Eligibility and Share Allocation

To be eligible for the new entity's shares, existing shareholders must hold HUL shares by the record date of December 5, 2025. This demerger will impact all current shareholders who meet this criterion.

Recent Corporate Activities

In addition to this demerger announcement, HUL has been actively engaging with the investment community. As per a recent LODR filing dated November 21, 2025, the company plans to participate in the Goldman Sachs India Consumer Forum 2025, scheduled for November 27, 2025. This virtual conference provides an opportunity for HUL to interact with analysts and institutional investors, potentially discussing the company's strategies and outlook, including the ice cream business demerger.

Conclusion

The demerger of HUL's ice cream business marks a significant development for the company and its shareholders. As the effective date (December 1, 2025) and record date (December 5, 2025) approach, shareholders should ensure their holdings are in order and, if necessary, complete any required KYC procedures. This corporate action may potentially lead to value unlocking for shareholders, as the ice cream business will operate as a separate entity under the Kwality Wall's brand.

Hindustan Unilever Limited (HUL) has announced significant developments in its demerger scheme with Kwality Wall's (India) Limited (KWIL). The company has set key dates for the implementation of the scheme and made important board appointments.

Scheme Implementation Timeline

HUL's Board of Directors has confirmed that the Scheme of Arrangement between HUL and KWIL will become effective from December 1, 2025. This date marks the first calendar day of the month following the completion of all conditions specified in Clause 20 of the Scheme.

Key dates for the demerger process include:

The Record Date is set for determining eligible HUL shareholders who will receive KWIL shares. The share entitlement ratio is 1:1, meaning shareholders will receive one equity share of KWIL (face value Re. 1) for every one equity share held in HUL (face value Re. 1).

Board Appointments and Changes

In addition to the demerger updates, HUL has made significant changes to its board:

1. Ritesh Tiwari: Appointed as an Additional Non-Executive Director of KWIL, effective November 17, 2025. Mr. Tiwari, currently the Global Head M&A, Treasury and Ventures of Unilever PLC, brings extensive experience in finance leadership across global markets.

2. Bobby Parikh: Appointed as an Independent Director on HUL's Board for a five-year term, from December 1, 2025, to November 30, 2030. Mr. Parikh will also serve as the Chairman of the Risk Management Committee and a member of the Audit Committee.

Expert Commentary

Nitin Paranjpe, Non-Executive Chairman of HUL, commented on Bobby Parikh's appointment: "We are delighted to welcome Bobby to the HUL Board as an Independent Director. His experience, combined with expertise in financial strategy and regulatory frameworks, has helped organisations steer complex transformative business changes. We look forward to his insights and contributions in the Company's next phase of growth."

Mr. Parikh expressed his thoughts on joining HUL's board: "It is an honour to join the Board of Hindustan Unilever Limited, a company that has set benchmarks in corporate governance and responsible business. I look forward to working with my fellow Board members and the leadership team to help steer HUL through new opportunities and challenges."

These developments signify HUL's strategic moves in restructuring its business and strengthening its governance structure as it prepares for the next phase of growth in the Indian market.