HUL spins off Kwality Wall's. Can it scoop investor returns?

There's a fresh chill in the air — and it's not the weather. Hindustan Unilever (HUL), India's FMCG heavyweight, is spinning off its ice cream division into a separate company. The move, recently cleared by both the BSE and NSE, will see the creation of Kwality Wall's India (KWIL), a pure-play ice cream business. For every HUL share you own, you'll now get one KWIL share. But what's really cooking behind this demerger? About the company HUL is a household name, with brands like Dove, Surf Excel, and Bru in your daily routine. It's India's largest FMCG company, with products across home care, beauty, and foods. But within its vast portfolio, the ice cream business — think Kwality Wall's, Magnum, and Cornetto — is a niche, seasonal play. Below are the company's fundamental metrics: Metric Value Market cap Rs 5,55,913 crore Revenue (TTM) Rs 63,121 crore Net profit (TTM) Rs 10,649 crore ROE 20.3 per cent ROCE 28.1 per cent