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.
The Belagavi based Vijaykant Dairy and Food Products Ltd has its ice cream and frozen desserts under brand Adityaa which has a major presence in Karnataka, Maharashtra, Goa and Kerala.
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.
Adityaa Milk is a fast-growing brand and brings in distribution and portfolio synergies to Kwality Wall’s across Maharashtra, Goa, Karnataka and Kerala.
The company collects more than 2 lakh litres of fresh cow milk every day from around 40,000 farmers spread across nearly 1,500 villages in Karnataka to process various milk products.