VADILAL INDUSTRIES

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SUBMITTED BY: MOHD MAHIR SHAIKH

ROLL NUMBER: 20DM124
INTRODUCTION TO ICE CREAM INDUSTRY IN INDIA
Originally known as iced cream, ice cream can be defined as a mixture of milk,
cream, sugar and other ingredients, that has been frozen into a soft, creamy
delight using special techniques. It generally contains stabilizers like gluten which
give the mixture a consistent texture. Ice cream today represents one of the fastest
growing food segments in India.
Ice cream industry occupies important place in India. It is one of the consumer goods
industries its products is important popular diet.
India is an agriculture-based country because of the large number of cattle and large milk
production most of the dairy and ice-cream industries has developed and India is well ranked
in the world.
Ice cream industry has brought magnificent change in the rural economy. It provides
employment to the marginal farmers.
The healthy growth of the market can be attributed to numerous forces. Population
growth, rising disposable incomes, urbanisation rates, changing consumer
preferences, improved cold supply chain and growing deep freezer penetration are
some of the factors that are broadening the growth aspects of the market.

OVERVIEW OF INDIAN ICE CREAM INDUSTRY

The ice-cream industry in India is worth Rs. 2000 core (2008- 09).
This industry can be divided into Branded market & the unbranded market.
The branded market at present is 100 Million liters per annum valued at Rs. 800 core.
Market share in 2008-09, 38% followed by - quality walls - 14%, Vadilal – 12% ,Mother
Dairy- 8.

Introduction to Vadilal industries

Vadilal was started when ice cream wasn't even industry. Vadilal was started by Vadilal
Gandhi in 1926. He passed on the business to his son, Ranchod Lal, who ran a one-person
operation with a hand cranked machine, started a tiny low retail outlet in 1926. Subsequently
his son’s Lakshman and Ramchandra transmitted the business and gave new direction. By
1970 they created Vadilal Industries into trendy company entity and it already had 8-10
retailers in Ahmedabad. In 1984-85 Vadilal started increasing outside Gujarat. In 2000,
Vadilal launched the 1 plus 1 theme within the "Party Packs" and it had been a greatly sure-
fire theme these days, Vadilal is the country's second-largest ice cream whole by sales.
Vadilal has the biggest variety of ice creams within the country, with quite one hundred fifty
flavours oversubscribed in additional than three hundred packs and forms. A serious
success issue has been its ability to cater to totally different market segments through
multiple product ranges
It has 50,000 dealers across Asian country and 250 Vadilal Parlors,it has the most
franchisee retails. Vadilal cluster of industries has three plants specifically the Bareilly Plant,
the Dharampur Plant and the Pundhra Plant. Vadilal Industries jointly entered the processed
foods business within the early Nineties and is these days one amongst the biggest players
in Asian country. Vadilal has marked milestones in frozen Foods class with multi-faceted
growth and an intensive product portfolio alongside dilated producing facility. In 2013, Vadilal
has been voted because the "Most sure Ice cream whole in India" as per the ‘The whole
Trust Report-2013’.

MACRO-ECONOMICS FACTORS AFFECTING VADILAL

INDUSTRIES
Price Level

A price level is variation of existing prices for economically produced goods and
services.The higher the price, people will buy less. If prices of ice cream increases people
would spend less on ice cream as it is not basic necessities for people.

Population

The demand of ice cream will increase with increase in population as the no of consumers
will increase with increase in population.

THE UNEMPLOYMENT RATE

Unemployment rate equals to 10.5% today (on the second quarter 2013) in France has
considerably increased since 2008 (equals to 7.5%). Unemployment rate impacts a lot on ice
cream industry

THE INFLATION

Inflation is also a factor to take into account because it strongly impacts on the final
consumer prices and also, the level of sales of ice creams and sorbets. In this recessionary
period, consumers are more and more cautions with their money and tend to buy less ice
creams.
Gross domestic product
Gross domestic product is quantitative measure of the market value of all finished goods and
services produced over a given period of time. GDP of country is affected on higher scale
when there are changes in food industry, but particular with ice cream industry it contributes
less.

National Income
When national income is more the purchase power is more and which can support huge
production and selling of ice cream products. Ice cream industry contributes a considerable
percentage in India’s food industry income.

Technology
Technology can affect supply of almost all industries. Similar with ice cream industries also if
advanced better technology is available the production of ice cream will increase which will
increase the supply of ice cream.

Taxes and Subsidies

Taxes and subsidies will affect price of ice cream. If government impose high taxes on ice
cream products, then the cost of production of ice cream will increase on the same side if
government provide subsidies to producer the cost of production of ice cream will decrease.
So with subsidies and taxes the supply of ice cream will increase or decrease.

Government regulation
Government regulation will decrease the supply for ice cream industry and government
deregulation can increase supply of ice cream industry.

Challenges of ice cream industry

1)Rise in demand for premium ice cream and innovation with flavours

Ice cream industry is also facing challenge to come with innovative and high quality product.
Earlier the demand of 10 Rs kulfi or choco bar was very high but now days we have seen
rise in demand for high price and quality product like badabite, choco bars with nuts etc.
Demand for premium ice cream flavours like Rajbhog, American casatta, Belgian chocolate
is also increasing. Demand for innovative ice creams like tava ice cream, ice cream
sandwiches etc is increasing. So producers are constantly under challenge to improve the
quality of their ice creams, produce more of premium ice creams and launch innovative ice
cream products.
2)Health Freaks
There is a rise in demand of low-calorie ice creams and dairy treats. Since consumers are
more health conscious than ever, sugar content has become an important parameter in ice
creams.
3)Transparent labels
Growth in the health concerns, customers expect transparent labels as a standard and
prefer products with few and easy to pronounce ingredients.
4)Flexibility in packaging
Ice creams are commonly consumed as take-home product or single serve product;
customers look for packaging that provides convenience but also for a good portion control.
5)Sustenance in health claims
The continuation of health conscious and growing demand in for healthy products has led to
rise in claims such as ‘no artificial flavours’, ‘organic’, ‘all-natural ingredients. It is the major
challenge for maintaining such claims for manufactures as they struggle with transparency
and traceability of products.
6)Low investment cost with reliable Operation
Lower investments with good quality and quantity turns out to be most challenging factor.
Since high investments might lead to lower income and cheap investments can turn into a
nightmare. Complicated and expensive would deliver good outcome but request for qualifies
operators. Thus, the machine chosen must be robust, reliable, and easily configured for
different products- that can be run by minimal training.
FUTURE STRATEGY OF ICE-CREAM INDUSTRY
Focusing on distribution & franchising new Happiness parlours all over India.
Vadilal has the largest fleet of Refrigerated Vehicles in India, strong Distribution Network
comprising C&F Agents, distributors and retail dealers.
The Company's future strategy is continuously serving consumers with-innovative & value
added products.
The overall vision of the company, to increase the consumption of ice cream on a national
level, is fully supported by appropriate promotion and market communication

References

https://vadilalgroup.com/?page_id=124

https://www.business-standard.com/company/vadilal-inds-1524/information/company-history

https://www.researchnester.com/reports/india-ice-cream-market/2463

https://www.blendhub.com/ice-cream-industry-in-india/