HUL said the proposed acquisition is in line with its strategic intent to strengthen its position in the rapidly growing ice cream and frozen dessert market in India.
Sanjiv Mehta, chairman and managing director of HUL, said, “Ice creams and frozen desserts is an exciting category and we see great potential for growth. We believe the acquisition will complement our existing portfolio of Kwality Wall’s.”
Leading ice cream maker
Adityaa Milk is a fast-growing brand, HUL said, and has presence in dairy and dairy-based products, and over the last five years has successfully expanded into ice creams and frozen desserts. It has its roots in Karnataka and has gradually expanded into Maharashtra, Goa and Kerala.
The transaction is subject to fulfilment of certain conditions and the parties will work together to complete the deal over the next few months. VDFPL will manage the business until the transaction is completed, and will continue to manufacture for HUL for an agreed period of time.
Unilever is the leading ice cream and frozen desserts company in the world. In India, HUL markets ice creams and frozen desserts under the Kwality Wall’s and Magnum brands.