Finshots Daily HUL spins out the cold stuff
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Aug 13, 2025 Hindustan Unilever is shaking things up by demerging its ice cream business, leading to the creation of Quality Walls India Limited. This strategic move aims to enhance operational efficiency while navigating potential market challenges. The discussion also hints at broader implications for the company and its future in the cold desserts sector. Plus, there's a focus on financial security with advice on insurance—perfect for achieving peace of mind this Independence Day!
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Why HUL Is Spinning Off Ice Cream
- HUL plans to demerge its ice-cream business into a listed company called Quality Walls India (KWIL).
- This carve-out lets HUL focus on asset-light categories while KWIL handles capital- and infrastructure-heavy ice cream operations.
KWIL Starts With Strong Physical Footprint
- KWIL will start debt-free with manufacturing, warehouses, employees and 2.5 lakh freezer cabinets in trade as its assets.
- The ice cream category in India has grown from 0.4 litres to 1.6 litres per person and still lags global peers, signaling large growth potential.
Huge Headroom For Ice Cream Demand
- Per-capita ice cream consumption in India rose four-fold over a decade but remains far below the US and China.
- The category is currently ~30,000 crore rupees and could exceed 90,000 crore in eight years, highlighting runway for expansion.