HUL acquires Adityaa Milk to expand frozen dessert footprint

Hindustan Unilever, the holder of Kwality Wall’s and Magnum brands, signed an agreement to acquire brand ‘Adityaa Milk’ to increase its penetration into Ice-Cream and Frozen Desserts business.

Adityaa Milk belonged to Vijaykant Dairy and Food Products and its group company. VDFPL will manage business until completion of the transaction whereby the company would continue to manufacture the products for HUL till then. Adityaa Milk, incorporated in September 2004, has been an established player in the ice cream and frozen dessert for more than half a decade.

HUL seeks potential growth from the segment post-acquisition and expects the acquisition to complement Kwality Walls' brand. It brings distribution and portfolio synergies to Kwality Wall's across Mahrashtra, Goa, Karnataka and Kerala, with roots in Karnataka.

The stock of HUL shed 1.7 per cent at 15:15 hours after witnessing Open-High at Rs. 1,764.95 per share in Monday’s trade. Technically, the stock had hit a Double top at all time high of 1,779 levels. Thereafter, it plunged up to 1,628 and bounced back to 1,764 levels after 7-8 days of consolidation. In case, the stock breaches 1,765, it may break its all-time high too. For now, the stock is set for some correction in the near term.