Hindustan Unilever (HUL) on Monday signed an agreement to acquire the Adityaa Milk-branded ice cream and frozen desserts business of Vijaykant Dairy and Food Products (VDFPL) and its group company.
This acquisition is along HUL’s strategic intent to strengthen its position in the ice cream and frozen dessert market in the country.
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.” HUL also sells products under its Magnum brand.
The deal includes the front-end distribution network of the ice cream business across geographies and is expected to be completed 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.
Adityaa Milk business complements HUL’s ice cream segment across Maharashtra, Goa, Karnataka, and Kerala.