HUL Shares in Focus; Incorporates New Subsidiary Kwality Wall’s for Ice Cream Business

Hindustan Unilever (HUL) has acquired Kwality Wall’s (India) Ltd., incorporated on January 10, 2025, as part of HUL’s strategic move to restructure its ice cream business, currently under evaluation by the company’s board, the company said in a press release on the stock exchanges.

HUL’s Acquisition Details 

Hindustan Unilever (HUL) has completed the acquisition of Kwality Wall’s (India) Ltd. (KWIL) as part of its restructuring plan for its ice cream business. The acquisition was disclosed in an announcement on January 10, 2025, and forms part of HUL’s strategy to demerge its ice cream business, a move currently under consideration by the company’s board.

Kwality Wall’s (India) Ltd. was incorporated on January 10, 2025, with the primary objective of manufacturing, marketing, distributing, and selling ice creams, frozen desserts (both dairy and non-dairy), frozen snacks, frozen vegetables, and processed foods.

The acquisition will enable HUL to streamline its ice cream operations and bolster its position in the fast-moving consumer goods (FMCG) sector.

As of the latest disclosure, the acquisition is not categorised as a related-party transaction. Furthermore, the deal does not require any governmental or regulatory approvals, and it will be executed in a single tranche, with cash as the consideration.

Q2 FY25 Financial Highlights

Hindustan Unilever (HUL) reported a 4% decline in standalone net profit for Q2 FY25, dropping to ₹2,612 crore from ₹2,717 crore in the same quarter last year. However, the company saw a slight increase in its revenue from operations, which rose by 2% to ₹15,319 crore compared to ₹15,027 crore in the previous year.

Despite the drop in profits, HUL declared an interim dividend of ₹29 per equity share for the period. This announcement follows a challenging quarter for the FMCG sector, with factors such as high raw material costs and slow recovery in rural demand affecting overall performance.

Share Price Performance

Hindustan Unilever’s share price traded 0.43% lower at ₹2,431.65 at 12:40 PM on the NSE, breaking a four-session gaining streak. The stock opened at ₹2,417.05, down from its previous close of ₹2,442.05.

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