New Delhi: Ice cream maker Vadilal Industries on Tuesday said it is targetting sales growth of 40% in 2011-12, with plans to capture 25% market share in the next 2-3 years.
The company has also launched a range of new products targetting premium ice cream segment of the market.
“Currently, Vadilal is the second largest ice cream player in India, with 20% market share. In the next 2-3 years, we are targetting 25% share,” Vadilal Industries M D Rajesh Gandhi told reporters here.
According to Gandhi, the total ice cream market is estimated at Rs 2,500 crore, with the organised segment contributing Rs 1,500 crore.
The industry has been growing at a CAGR of 15% in the last five years. “As against the industry average, we are working hard to achieve a sales growth of 40% in 2011-12,” Gandhi said.
The premium ice cream segment is estimated to be around 10% of the total market.
“In the next 2-3 years, we expect our premium products under Badabite, Flingo and Gourmet brands to contribute around 10% to the company’s total sales,” Gandhi said.
To support the latest offering, the company has plans to invest Rs 6 crore on advertising and promotion in the next 45 days across media platforms.
The firm is also looking to increase the number of exclusive ‘Hapinezz´ outlets to sell its ice creams from 200 at present to 400 in the next 18 months.
“Most of the new outlets would be owned and run by franchisees,” Gandhi said.
The company has increased its production capacity from 2.25 lakh litres per day to 3.25 lakh litres per day from April, 2011 onwards at its facilities located at Pundhra in Gandhinagar (Gujarat) and at Bareilly in Uttar Pradesh.
“In the last two years, the company has invested Rs 80 crore to expand manufacturing capacity and strengthen sales support,” Gandhi said.
Besides selling ice creams, the company also offers a range of ready-to-eat food items primarily catering to 45 countries outside India.
Commenting on inflationary pressure, Gandhi said input costs have gone up in as the prices of ingredients such as chocolate, dry fruits and milk have seen a hike.
“Since February this year, we have increased the prices by 10%. But in the immediate future, there will be no hike,” Gandhi said.
For the 2009-10 fiscal, the company had registered revenues of Rs 188.91 crore and net profit of Rs 5.75 crore.
The firm’s shares were trading at Rs 176 in the late afternoon trade on the Bombay Stock Exchange, up 5.71% from the previous close.