Hindustan Unilever (HUL) has signed an agreement to acquire Vijaykant Dairy and Food Products’ (VDFPL) ice cream and frozen desserts businesses, which include its flagship brand ‘Adityaa Milk’ and front-end distribution network that spans several regions.

The financial details of the deal have not been divulged by either of the companies.

The acquisition is said to support HUL’s aim of strengthening its position within the Indian ice cream and frozen dessert markets.

"Adityaa Milk is reported to be one of the fastest-growing brands in the country and is anticipated to bring in various distribution and portfolio synergies within Kwality Wall’s."

VDFPL will continue to manage the business until the transaction is completed as part of the arrangement.

The company has also agreed to continue manufacturing activities 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.”

Adityaa Milk is reported to be one of the fastest-growing brands in the country and is anticipated to bring in various distribution and portfolio synergies within Kwality Wall’s across the states of Maharashtra, Goa, Karnataka and Kerala.

Adityaa Milk was originally incorporated in September 2004 and represents a flagship business for VDFPL.

The company originated in Karnataka and has since expanded its footprint into several parts of the country.

After establishing a strong presence in the dairy and dairy-based product markets, it has successfully expanded into ice creams and frozen desserts over the last five years.

VDFPL will continue to pursue its dairy business following the completion of the latest deal.

HUL currently markets ice creams and frozen desserts across India under the Kwality Wall’s and Magnum brands.

The transaction is subject to the fulfilment of certain conditions and the parties have agreed to work together to satisfy these requirements over the coming months.