New Delhi: FMCG major HUL has received shareholders' nod to demerge its ice cream business, which owns brands like Kwality Wall's, Cornetto and Magnum, into an independent listed entity. With this, Hindustan Unilever Ltd (HUL) has taken one step closer to its goal to demerge its ice cream business.
The majority of its shareholders have voted in favour of the resolution over the "Scheme of Arrangement between Hindustan Unilever Limited, Kwality Wall's", the FMCG major said while sharing the scrutiniser's report.
"The Resolution for approval of the Scheme of Arrangement amongst HUL, Kwality Wall's (India) Ltd and their respective shareholders, as set out in the Notice dated 7th July 2025, has been passed by the Members by requisite majority, pursuant to Section 230(6) of the Companies Act, 2013, through remote e-voting and e-voting at the Meeting," it said.
HUL has called for a meeting of its shareholders as per the directions of the National Company Law Tribunal (NCLT). According to the report, 99.99 per cent of the votes polled were cast in favour of the proposal. The process was virtually conducted through a remote e-voting facility on Tuesday. Last month, the CFO of the company said he expects the demerger process to be completed in the current fiscal and subsequent listing of the new entity on the exchanges.
All existing shareholders of the FMCG major will receive shares in the new entity in proportion to their shareholding in HUL in a ratio of 1:1. This demerger follows the decision of its global parent entity, Unilever's global separation from the ice-cream business.
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