Consumer goods major Hindustan Unilever Ltd (HUL) is planning to acquire the ice-cream and frozen deserts business of Vijaykant Dairy and Food Products Ltd (VDFPL). In India, HUL markets ice creams and frozen desserts under the Kwality Wall’s and Magnum brands. HUL has signed an agreement to acquire VDFPL’s flagship brand Adityaa Milk and its front-end distribution network across geographies. Vijaykant Dairy will continue managing its dairy business post acquisition. 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 company said in a statement today. 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. 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, which was incorporated in September 2004, has a presence in dairy and dairy-based products, in states such as Karnataka, Maharashtra, Goa and Kerala.
Source : thehindubusinessline.com
Published on: September 5, 2018