Vadilal on expansion mode; seeks franchisees

Ice cream maker Vadilal Industries is targeting sales growth of 40 per cent in 2011-12, with plans to capture 25 per cent market share in the next 2-3 years. 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, according to its top official.

"Currently, Vadilal is the second largest ice cream player in India, with 20 per cent market share. In the next 2-3 years, we are targeting 25 per cent share," Vadilal Industries M D Rajesh Gandhi told reporters.

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 per cent in the last five years. As against the industry average, we are working hard to achieve a sales growth of 40 per cent in 2011-12," Gandhi said.

The company has also launched a range of new products targetting premium ice cream segment of the market. "In the next 2-3 years, we expect our premium products under Badabite, Flingo and Gourmet brands to contribute around 10 per cent to the company's total sales," 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. For the 2009-10 fiscal, the company had registered revenues of Rs 188.91 crore and net profit of Rs 5.75 crore.