Lists at discount of 26% to indicative price of Rs 40.2 on NSE.

Kwality Wall’s Lists at Discount, Plans Ben & Jerry’s Launch and Massive Retail Expansion

• Kwality Wall’s India (KWIL), demerged ice-cream arm of Hindustan Unilever, is targeting growth via deeper distribution, sharper pricing and regional supply-chain efficiencies

• Listed on Monday at a 26% discount at ₹40.2 on the NSE

• Plans to introduce Ben & Jerry’s in India as demand and scale improve

• Market debut

  • Listed on BSE at ₹29.90, a 21.6% discount to adjusted price of ₹38.15

  • The Magnum Ice Cream Company announced an open offer to acquire 26% stake in KWIL

  • Open offer price: ₹21.33 per share

  • Total consideration at full acceptance: ₹1,303 crore

  • Follows Unilever’s share purchase agreement to sell its 61.9% stake to TMICC

• Business scale

  • Ice-cream business size: ₹1,800 crore, about 3% of HUL’s ₹60,000-crore topline

  • Key brands: Cornetto, Kwality Wall’s, Magnum

• Capital & operations

  • No funding constraints; capex plans locked for next 18 months

  • Access to 1,000 patents from the Unilever ecosystem

• Supply-chain strategy

  • Shift to “region-for-region” model

  • Focus on localised manufacturing and shorter cold-chain routes

  • Aims to improve cost efficiency and responsiveness vs dairy cooperatives and regional players

• Pricing strategy

  • Stronger push into ₹10–30 price band

  • Targeting mass consumption segments dominated by beverages, chocolates and wafers

• Market opportunity

  • India per capita ice-cream consumption: 500–600 ml/year, well below global peers

  • Of 13 million FMCG outlets, ice cream present in only ~1 million

  • KWIL directly services 200,000 outlets via freezer network

• Distribution expansion

  • Cabinet additions pace already doubled

  • Potential to add ~50,000 outlets annually

  • Target to expand reach by 100,000+ outlets over three years

• Digital & e-commerce

  • Quick commerce contributes high double-digit teen share of online sales

  • Growth driven by impulse buying, late-night consumption and in-home occasions

  • Rising potential for family packs as cold-chain reliability improves

• Logistics focus

  • Emphasis on maintaining cold-chain temperatures between -18°C and -22°C

  • Continued investments in supply chain and front-end execution

Kwality Walls sees opportunity for double-digit growth after HUL demerger

The company holds the number two spot in the ice cream market in India behind Amul and holds a 10 per cent market share in the category