FMCG Hindustan Unilever Ltd (HUL) today said it has signed an agreement with Vijaykant Dairy and Food Products Ltd (VDFPL) and its group company to acquire 'Adityaa Milk' brand ice cream and frozen desserts and front end distribution network across geographies for an undisclosed sum.
"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.
HUL said VDFPL will manage the business until the transaction is completed, and will also continue to manufacture for HUL for an agreed period of time.
HUL Chairman and Managing Director Sanjiv Mehta 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 said Adityaa Milk brings in distribution and portfolio synergies to Kwality Wall's across Maharashtra, Goa, Karnataka 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, it added.
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