HUL buys Vijaykant Dairy’s ice cream business Adityaa to complement Kwality Wall’s

Fast moving consumer goods (FMCG) major Hindustan Unilever (HUL) is acquiring Vijaykant Dairy’s ice cream and frozen desserts business operated under its flagship brand Adityaa Milk. An agreement between HUL and Karnataka-based Vijaykant Dairy and Food Products Ltd (VDFPL) also includes the latter’s front-end distribution network across geographies.

The proposed acquisition is in line with the company’s strategic intent to strengthen its position in the rapidly growing ice-cream and frozen dessert market in India, HUL said in a statement. Sanjiv Mehta, chairman and managing director, 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.”

A flagship business of VDFPL, Adityaa Milk was incorporated in September 2004. A fast-growing brand, it is expected to bring in distribution and portfolio synergies to Kwality Wall’s across Maharashtra, Goa, Karnataka and Kerala.

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Abneesh Roy, senior vice president - institutional equities, Edelweiss Securities, said, “HUL has seen good success post the acquisition of Indulekha which would have given it more confidence to do merger and acquisitions.”

Source: DNA Money