HUL to acquire Karnataka based Adityaa Milk ice cream

Pashu Sandesh, 6^th July 2018

Hindustan Unilever Limited (HUL) which markets Ice Creams and Frozen Desserts under the Kwality Wall’s, Cornetto and Magnum brands on Monday announced that it has signed an agreement with Karnataka based Vijaykant Dairy and Food Products Limited (VDFPL) and its group company to acquire its ice cream and frozen desserts business consisting of its flagship brand ‘Adityaa Milk’. HUL has not disclosed the amount of the deal.

In a press release HUL said, the proposed acquisition is in line with HUL’s strategic intent to strengthen its position in the rapidly growing Ice Cream and Frozen Dessert market in India.

The transaction is subject to fulfillment of certain conditions and the parties will work together to complete this over the next few months. VDFPL will manage the business until the transaction is completed, and will also continue to manufacture for HUL for an agreed period of time.

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.”

Adityaa Milk is a fast-growing brand and brings in distribution and portfolio synergies to Kwality Wall’s across Maharashtra, Goa, Karnataka and Kerala. Adityaa Milk is a flagship business of VDFPL which was incorporated in September 2004. It 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. Post the acquisition of its ice cream and frozen desserts business by HUL, VDFPL will continue to pursue its dairy business.

Gujarat Cooperative Milk Marketing Federation’s “Amul” with an estimated 32% market share is the largest selling ice cream brand in our country. After Amul, HUL is a number two player in ice cream market and this acquisition will help in closing its gap with Amul.