Hindustan Unilever Ltd. (HUL) has approved a plan to demerge its ice cream operations, including well-known brands like Kwality Wall’s, Magnum, and Cornetto. Shareholders of HUL will receive shares in the new entity after the demerger is completed. The new company will be listed on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE).

This decision follows the board’s earlier approval to separate the ice cream business, which is expected to enhance operational focus and maximize shareholder value. The demerger is still subject to necessary regulatory approvals and shareholder consent. HUL expects to complete the demerger and list the new entity by the March quarter of fiscal 2026.

The move came after Unilever, HUL’s parent company, decided to separate the ice cream business. A committee of independent directors was formed in September to evaluate the plan, and based on their recommendation, the separation was announced in October. HUL believes the demerger will allow both companies to better focus on their growth strategies and value creation.