Ice Cream Industry Profile:

The ice cream industry in India is in many ways, reflective of the overall population distribution. The countrys population is primarily rural with approximately 65% of the population living in villages with a population of less than 5,000; this means there are well over 150,000 villages with a combined population in excess of 650 million. This has contributed to a highly fragmented industry that by many estimates has over 70,000 ice cream entities. Many of these are single family operations where the product is made either in the home or in very small factories and sold on the streets. The 350 million remaining people are concentrated in the cities where the industry is reasonably concentrated in the hands of a few international and domestic firms. It is estimated that only 30% of the entire market is organized and the industry meets the classic definition of a fragmented industry, that is, one where there is an absence of market leaders with the power to shape industry events. Ice cream or ice-cream is a frozen dessert usually made from dairy products, such as milk and cream, and often combined with fruits or other ingredients and flavours. Most varieties contain sugar, although some are made with other sweeteners. In some cases, artificial flavourings and colorings are used in addition to (or in replacement of) the natural ingredients. This mixture is stirred slowly while cooling to prevent large ice crystals from forming; the result is a smoothly textured ice cream. The meaning of the term ice cream varies from one country to another. Terms like frozen custard, frozen yogurt, sorbet, gelato and others are used to distinguish different varieties and styles. In some countries, like the USA, the term ice cream applies only to a specific variety, and their governments regulate the commercial use of all these terms based on quantities of ingredients. In others, like Italy and Argentina, one word is used for all the variants. Alternatives made from soy milk, rice milk, and goat milk are available for those who are lactose intolerant or have an allergy to dairy protein, or in the case of soy milk for those who want to avoid animal products.

Ancient civilizations have served ice for cold foods for thousands of years. The BBC reports that a frozen mixture of milk and rice was invented in China around 200 BC, and in 618-97 AD, King Tang of Shang had 94 men who made a frozen dish of buffalo milk, flour, and camphor. The Roman Emperor Nero (3768) had ice brought from the mountains and combined with fruit toppings. These were some early chilled delicacies. In 400 BC, Persians invented a special chilled pudding-like dish, made of rose water and vermicelli which was served to royalty during summers. The ice was mixed with saffron, fruits, and various other flavours. The treat, widely made in Iran today, is called "faloodeh", and is made from starch (usually wheat), spun in a sieve-like machine which produces threads or drops of the batter, which are boiled in water. The mix is then frozen, and mixed with rose water and lemons, before serving. Industry Competition: As the industry evaluation would indicate the competition is significant. The 70,000 some participants is a large number but the more serious challenge comes from the top six national firms; Amul, Kwality Walls, Mother Dairy, Vadilal, Dinshaw, and Arun. These top six firms dominate the market and essentially control the organized market. Detail statistics are not available to indicate market share but Ben & Jerry's estimates that these six firms control 40% to 50% of the urban market. Historically MNCs have not achieved much success in penetrating the Indian market. There are a number of possible explanations for this; the relative embryonic and disorganized nature of the market, excessive government regulation that included excessive tariffs and the restriction that imported ice cream could only be sold in hotels, and a highly fragmented and ineffective media. Most of these market inefficiencies have been or are in the process of being corrected and Ben & Jerry's believes that conditions have ripened to the extent where MNCs can now effectively enter the market and compete with the domestic firm

Industry Growth:

The three factors of growth, population, per capital consumption, and price are all projected to increase over the next six years. Population is projected to grow at 1.8%, per capital consumption is projected to grow at 5%, and prices are projected to increase at just over 1% per year. (Overall the long-term projection for consumer prices is expected to rise at 3.5%, however, given the intense level of competition Ben & Jerry's does not think it likely that ice cream prices will rise that fast.) Overall the market will grow from $245 million to $360 million, a compound growth rate of 8%. Of the $115 million in growth, 60% will come from increased per capita consumption, 24% from increased population, and 16% from increase in price.

Top Ice Cream Industries List: Vadilal Ice Cream India Amul Ice Cream

 Kwality Walls Mother Diary Ben & Jerry MTR

Short Profile of Ice Cream Companies:

Vadilal Ice Cream Ltd: Vadilal ice cream division has always been a hot favorite with the people both inside and outside the organization. In India, the name Vadilal is synonymous with Ice Cream. The Ice Cream industry in India today has a turnover of Rs. 15 billion [US$ 330 million]. A quarter of this comes from the house of Vadilal alone. But thats no surprise, considering that we have the largest range of Ice Creams in the country 120 plus flavors, in a variety of more than 250 packs and forms. The range includes cones, candies, bars, ice-lollies, small cups, big cups, family packs, and economy packs. Something for all tastes, preferences and budgets. To make it convenient for our consumers to relish our complete range under one roof, we have set up a chain of Happiness Parlors Ice Cream boutiques so to say. Hordes of people flock to these parlors daily because they know that our products contain the purest and creamiest milk, and the freshest and tastiest fruits and nuts. Among our products are One Up Chocobar and King Cone all-time favorites which have today attained the generic status. Another hit is our Kulfi traditional Indian milk sweet. Some of our products are a combination with confectioneries. Since our products are highly perishable, quick transport and proper storage are of paramount importance. Hence our refrigeration equipment and deep freezes are imported from companies, which are world leaders in their respective fields. To ensure sufficient, timely and constant ice cream supply, we have a Cold Chain Network comprising three

manufacturing plants [totaling a production capacity of 1.25 lakh litre per day], about 23 C&FA, more than 500 Distributors and over 40,000 Retailers.

Amul India Ltd: AMUL means "priceless" in Sanskrit. The brand name "Amul," from the Sanskrit "Amoolya," was suggested by a quality control expert in Anand. Variants, all meaning "priceless", are found in several Indian languages. Amul products have been in use in millions of homes since 1946. Amul Butter, Amul Milk Powder, Amul Ghee, Amulspray, Amul Cheese, Amul Chocolates, Amul Shrikhand, Amul Ice cream, Nutramul, Amul Milk and Amulya have made Amul a leading food brand in India. (Turnover: Rs. 67.11 billion in 2008-09). Today Amul is a symbol of many things. Of high-quality products sold at reasonable prices. Of the genesis of a vast co-operative network. Of the triumph of indigenous technology. Of the marketing savvy of a farmers' organisation. And of a proven model for dairy development.

Kwality Walls Ltd: Kwality Ice Cream is the pioneer in the Indian ice-cream manufacturing industry and in 1956 became the first company in the country to use imported technology for manufacturing ice-cream on a commercial scale. As the ice-cream industry exploded in India, in 1995 Kwality Group joined hands with Hindustan Lever Limited and then there was no looking back. The Indian consumer market was introduced to KWALITY WALLS the result of a collaboration between global brand Walls and the leading Indian ice-cream brand Kwality. Though the two giants eventually parted ways, the collaboration made Kwality a household name and created deep in roads for the brand in the consumer market. Today, Kwality is not just a brand it is the ice-cream associated with the Indian summer; its the first choice in ice-cream for any child or adult during the

scorching Indian summers. Kwality ice-creams are trusted not only for their rich, creamy flavours, but also for their trusted quality and nutritious food value.

Mother Diary Ltd: Mother Dairy Fruit and Vegetable Pvt. Ltd. offers the following products: Mother Dairy markets dairy products like Liquid Milk, Ice Creams, Flavoured Milk, Dahi, Lassi, Mishti Doi, Ghee, White Butter, Table Butter, Cheese, UHT Milk, Dhara range of edible oils and the Safal range of fresh Fruits & Vegetables, Frozen Vegetables and Fruit Juices at a national level, through its sales and distribution networks, for marketing food items. Mother Dairy milk (Bulk Vended Milk) is fortified with vitamin A @2000 IU per litre of milk as a part of social accountability. This program was started with the Mother Dairy, Delhi, since February 1980and there after Mother Dairy is continuing this program on their own as a social responsibility without having any financial assistance from the Government as well as since it is felt that BVM is generally consumed by the middle / lower middle / poor strata of the society. It is also found that the dietary practices adopted by these classes are deficient in Vitamin A. Mother Dairy sources significant part of its requirement of liquid milk from dairy cooperatives. Mother Dairy sources fruits and vegetables from farmers / growers associations. Mother Dairy also contributes to the cause of oilseeds grower cooperatives that manufacture/ pack the Dhara range of edible oils by undertaking to nationally market all Dhara products.The company markets an array of fresh and frozen fruit and vegetable products under the brand name SAFAL through a chain of 400+ own Fruit and Vegetable shops and more than 20,000 retail outlets in various parts of the country. Fresh produce from the producers is handled at the Companys modern distribution facility in Delhi with an annual capacity of 200,000 MT. An IQF facility with capacity of around 75 MT per day is also operational in Delhi. A state-of-the-art fruit processing plant of fruit handling capacity of 120 MT per day, a 100 percent EOU, setup in 1996 at Mumbai supplies quality products in the international market. With increasing demand another

state-of-the-art fruit processing plant has been set up at Bangalore with fruit handling capacity of around 250 MT per day.

Ben & Jerry Ltd: Since 2003, Ben & Jerry's have been working on a sustainable Caring Dairy initiative, which helps level out needs of the farmers and their cows, as well as the planet's needs. The company has, so far, reduced energy use on their 11 farms by 2%, and converted all their farms to green energy. Also, in 2002, Ben & Jerry's in the USA committed to reducing carbon dioxide emissions by 10% by 2007, and by investing in a variety of efficiency measures, this target was achieved with ease - the USA now produce 32% less carbon dioxide emissions (per pint of ice cream) today (in 2008) than in 2002. This initiative was brought to the exclusive provider of milk for Ben & Jerry's European ice cream production, Beemster Cheese, in 2007.

In addition to helping farmers and their cows, in 2001 Ben & Jerry's began sourcing vanilla, cocoa, and coffee, for their smooth ice creams, from cooperatively run farmer associations - these community structures help promote their members' quality of life, improve worker's benefits, and sustain a commitment to their land and communities. In 2006, the world's first ever vanilla ice cream made with Fairtrade ingredients was launched by Ben & Jerry's. 2007 saw the release of Vanilla Toffee Crunch, using 100% Fairtrade certified cocoa, sugar, and vanilla, and in 2008, Chunky Monkey was guaranteed to be traded in accordance with international Fairtrade standards as well. MTR Pvt Ltd:

MTR Foods Private Limited is amongst the top five processed food manufacturers in India. We manufacture, market and export a wide range of packaged foods to global

markets that include USA, UK, Australia, New Zealand, Malaysia, Singapore, UAE, Japan and Oman. Starting with the legendary MTR restaurant in Bangalore, Indias silicon valley, we now offer ''complete meal solutions'. Our wide range of products include ready-to-eat curries and rice, ready-to-cook gravies, frozen foods, ice cream, instant snack and dessert mixes, spices and a variety of accompaniments like pickles and papads. Our deep understanding of culinary expectations and needs has resulted in many new and innovative products. Our investments in infrastructure and technology ensure that we can scale rapidly and bring these to market. Today, consumers across the globe count on us to bring them all-natural, wholesome and delicious food that is also convenient and no-fuss.