Kwality Walls (India) Limited (KWIL), a leading ice cream and frozen desserts company in India, has announced the formation of its Board of Directors as it prepares for its demerger from Hindustan Unilever Limited (HUL). The strategic move, set to take effect on December 1, 2025, marks a significant milestone for KWIL as it transitions into an independent listed entity.

Board Composition

The newly constituted board comprises seven members, bringing together a diverse mix of experience and expertise. Here's a breakdown of the appointments:

Key Appointments

Executive Directors

1. Chitranj Goel: Appointed as Deputy Managing Director
2. Prashant Premrajka: Appointed as Chief Financial Officer (CFO)

Non-Executive Director

• Ritesh Tiwari: Currently serves as the Global Head of M&A, Treasury and Ventures at Unilever PLC

Independent Directors

• Ravi Pisharody
• Madhavan Hariharan
• JV Raman
• Shukla Wassan

Strategic Implications

The formation of this board is a crucial step in KWIL's journey towards becoming an independent entity. By bringing together seasoned professionals with diverse backgrounds in consumer goods, finance, governance, and strategic management, KWIL is positioning itself for focused growth in the ice cream market.

About Kwality Walls (India) Limited

KWIL is known for its portfolio of ice cream brands, including Kwality Walls, Magnum, and Cornetto. The company's demerger from Hindustan Unilever is expected to allow for more focused operations and quicker response to market dynamics in the ice cream category.

Effective Date

The new board structure and KWIL's independent operations are set to commence on December 1, 2025. Following this, the company is expected to be listed on India's major stock exchanges, although the exact listing date has not been disclosed.

This strategic restructuring sets the stage for KWIL to leverage its brand presence and distribution network as a standalone entity in India's ice cream market.

Hindustan Unilever Limited (HUL), a leading FMCG company in India, has successfully completed the demerger of its ice cream business to Kwality Wall's (India) Limited (KWIL). Following the completion, the company has issued detailed guidance to shareholders regarding the apportionment of acquisition costs for their shareholdings.

Demerger Completion Details

Kwality Wall's (India) Limited has officially completed the share allotment process following the approved demerger scheme. The Board of KWIL, at its meeting held on December 12, approved the allotment of shares to eligible HUL shareholders.

Cost Apportionment Guidelines

HUL has provided shareholders with specific guidance on apportioning their total cost of acquisition between HUL and KWIL shares post-demerger. The apportionment ratio has been determined based on the net worth of HUL and the net assets of the Ice Cream Business Undertaking as of November 30.

Practical Example

For shareholders who purchased 1,000 HUL shares at ₹400.00 per share (total cost ₹4,00,000.00), the cost apportionment would be:

Regulatory Compliance and Tax Implications

The demerger has been structured in accordance with Section 2(19AA) of the Income Tax Act, 1961. Under Section 47(vid) of the Act, the allotment of KWIL equity shares will not be regarded as a transfer. Additionally, as per explanation 1(i)(g) to Section 2(42A) of the Act, the date of acquisition of HUL equity shares will be deemed to be the date of acquisition for KWIL equity shares.

Corporate Structure Changes

As part of the demerger process, KWIL's Board has approved the cancellation and reduction of its entire pre-scheme paid-up share capital comprising 5.00 crore fully paid-up equity shares of ₹1.00 each, which was entirely held by HUL. Consequently, KWIL has ceased to be a wholly-owned subsidiary of Hindustan Unilever with effect from December 12.

Listing and Governance Structure

KWIL will take necessary steps to obtain listing and trading permission for the allotted equity shares from BSE Limited and National Stock Exchange of India Limited. The newly allotted equity shares will remain frozen until listing and trading permission is granted by the stock exchanges. The company has established statutory committees required for a listed company and appointed senior managerial personnel to support its operations as an independent entity.