Vadilal set to spread itself big in the North

| Updated on: May 05, 2011

Gujarat-based ice-cream maker Vadilal is in expansion mode. It plans to cater to customers in North India, particularly Delhi, in a big way.

In a significant push for its products in the northern region, Vadilal Industries said it plans to capture 24 per cent share of the Rs 2,500-crore ice-cream market and double its 200 Happinezz parlours in a year-and-a-half.

Though it would take another year for a Happinezz parlour to come up in Delhi, Vadilal will sell its products through hand push-carts and retail stores, said Mr Rajesh Gandhi, Managing Director.

More retail points

The company plans to add 10,000 more retail touch points to its existing 50,000 in a year's time.

To market its products, the company will be investing Rs 6 crore in the next 45 days.

“We have planned television commercials, hoardings, and radio and print media ads to reach customers,” said Mr Gandhi.

The company plans to allocate 8-9 per cent of its turnover as marketing-spend.

The company aims to make a presence in the the western, northern and eastern markets before evaluating the South, said Mr Devanshu Gandhi, Managing Director.

Premium segment

Vadilal has launched its premium range of products — Badabita, Flingo and Gourmet. It expects this segment to bring in 10 per cent of its revenues in the next 2-3 years and is looking to capture 3-4 per cent of the premium segment of the ice-cream market.

The organised frozen desserts sector in India is about Rs 1,500 crore. The Rs 300-crore company is growing at a CAGR of 25 per cent. It has a combined capacity of 3.25 lakh litres a day from its two facilities in Pundhra (Gujarat) and Bareilly (Uttar Pradesh).

Published on May 06, 2011

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