Good news for all the ice cream lovers across the country, as Kwality Walls is planning one of the biggest transformations in the country by replacing palm oil and vegetable fats with dairy ingredients across its product lineup. The move is also the company’s larger ambition to position itself as a pure ice cream brand rather than a frozen dessert business.
Why Is Kwality Wall’s Replacing Palm Oil With Dairy in India?
The global chief executive of the Magnum Ice Cream Company, Peter ter Kulve, revealed the strategy in an interview with The Economic Times. According to him, India has become the company’s most important strategic market after the global demerger of Unilever’s ice cream business.
According to him, Indian consumers increasingly prefer dairy-based products because they are often associated with better quality, richer taste, and improved nutrition. Resultantly, Kwality Wall’s is now focusing on redesigning much of its India portfolio around milk-based ingredients.
Peter ter Kulve said nearly half of the company’s Indian portfolio is expected to become dairy-based this year itself, while the remaining products are also likely to complete the transition next year.
The company currently sells a mix of ice creams and frozen desserts in India. Frozen desserts often use vegetable oils such as palm oil instead of milk fat, mainly because they are cheaper to produce. However, Kwality Wall’s now wants to strengthen its identity as a premium ice cream company.
“We are not a frozen dessert company anywhere in the world; we are an ice cream company,” ter Kulve told The Economic Times.
This is a major shift in the company’s strategy, especially in a price-sensitive market like India, where frozen desserts have long dominated because of affordability.
Massive Cold Chain Investment Planned Across India
The dairy transition is only one part of Kwality Wall’s larger India expansion plan. The company is also investing heavily in manufacturing capacity, distribution networks, and cold-chain infrastructure.
One of the most ambitious targets includes deploying up to one million cold cabinets across India over time. For comparison, the company currently operates around 350,000 cold cabinets in Turkey, which is one of its major international markets.
The company believes improving cold storage and distribution will help increase ice cream accessibility in smaller towns and warmer regions where maintaining product quality remains a challenge.
Along with infrastructure expansion, Kwality Wall’s is also working on pricing strategies to attract more customers. Reports suggest the company has already started reducing prices in select categories to compete more aggressively in the growing Indian market.
Local Flavours and India Growth Story Drive New Strategy
Apart from this, the Kwality Wall is also introducing flavours which are designed specifically for Indian consumers. Alongside global products like Magnum and Cornetto, the company is pushing local favourites such as kulfi and kesar bhog to connect better with regional tastes.
India’s ice cream market is currently estimated at nearly $2 billion and is already one of the largest globally in terms of volume. However, per-capita consumption in the country remains relatively low compared to many international markets.
According to ter Kulve, this creates enormous long-term growth potential. He even indicated that India could eventually become the company’s biggest market worldwide if consumption trends continue to rise.
The company’s renewed India focus comes after the demerger of Kwality Wall’s from Hindustan Unilever Ltd. The separation officially became effective on December 1, 2025, after receiving all regulatory approvals. HUL had first approved the hive-off plan in November 2024, while the National Company Law Tribunal cleared the scheme in October 2025.
The newly separated business now operates under the Amsterdam-listed Magnum Ice Cream Company, which owns major brands including Kwality Wall’s, Magnum, and Cornetto.
With dairy-focused products, local flavours, and a giant cold-chain expansion plan, Kwality Wall’s appears ready to reshape the way India consumes ice cream in the coming years.
