INDIA – Hindustan Unilever Limited (HUL), a consumer goods company, has announced that it has signed an agreement with 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’ and front end distribution network across geographies.
According to the company, 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.
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.
The transaction is subject to fulfilment 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.
“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,” said Sanjiv Mehta, Chairman and Managing Director of HUL.
HUL markets Ice Creams and Frozen Desserts under the Kwality Wall’s and Magnum brands.