The Industry

Some Facts about Ice Cream:

1. The ice-cream and frozen dessert market in India is estimated at approximately $450
million in 2009-10. Growing at approximately 12-15 per cent, it is expected to cross $900
million by 2014-15. The branded market is estimated at approximately $200 million and
is growing at 20-25 percent.
2. North and west are the highest consumption centers accounting for close to 70 per cent of
the market.
3. Increasing incomes, a burgeoning middle class, buoyant economy and widening of
outlook contributes in making ice-cream more affordable and acceptable among Indian
masses.
The key trends are:
1. Increasing presence of international brands driving consumption in metros and minimetros.
2. Availability of multiple options to consumers from ice-creams to traditional kulfis to
new forms such as gelatos and flavoured yoghurts.
3. Growing trend of going out to eat ice-cream.
4. With increasing health consciousness especially among young urban population, higher
focus on fat free, low sugar and pro-biotic variants.
5. Reducing impact of seasonality on consumption.
6. Many players ready to increase presence with aggressive expansion plans.
7. Growing focus on smaller and profitable formats.
8. All small, medium and large ice cream players have come together to form the
association. The move was driven by the need to promote ice cream consumption and
upgrade the product quality, said Rajesh Gandhi, president, IICMA and managing
director, Vadilal Industries Ltd.
9. With the new association of ice cream makers formed, the industry will now be working
towards seeking better measures including reduction value added tax (VAT). Recently

government added one per cent excise duty, over and above the VAT. Ice cream in India is
considered a luxury and taxed highest. In Gujarat there is a 15 per cent levy of VAT on
ice cream. In other countries, there is no tax on food item like ice cream. In India, it
requires this attention, said Gandhi.
10. Among the members include the likes of Vadilal Industries, Havmor Ice-cream,
Hindustan Unilever for Kwality Walls, Arun Ice-cream, Cream Bell Ice-cream, Lazza Icecream, Top N Town, Scoops Ice-cream, and Dairy Day Ice-cream.
11. According to Gandhi, the ice cream market in India is estimated at Rs 2,500 crore in the
organised sector growing at 20 per cent. The per capita consumption is around 300 ml per
annum in India while it is 700 ml in Pakistan, three litres in China and 22 litres in
developed countries like the USA, Japan, Germany and others.
12. In terms of units, both organised and unorganised players put together, the Indian ice
cream market stands at 350 million litres, of which Gujarat has the largest share of 15 per
cent. With the formation of an association, we are looking at increasing consumption,
food safety and quality, as well as better networking and knowledge sharing amongst
members, added Gandhi.
Over the years, ice cream market in India has gained momentum with entry of national and
local players in the market. The segment, which is projected at Rs 3,000crore, has been
growing at 19.5 per cent year-on-year. And is projected to reach Rs 1,560 crore by 2018.
Major national players as well as regional entrants like Pabrais Fresh &Naturelle, Natural,
Amul, Milkyway are seeing great opportunities in the ice cream market.

Premiumising the product

The dairy business has seen lot of brands coming up with local, regional flavors when it comes to
ice cream segment. From local flavors of Japan, to the US, the brand has experimented all when
it comes to ice cream business in the country.
Earlier this year, Mother Dairy enters premium ice cream segment with its 'Belgium Choco bar',
Amul starts its Epic brand, which is a premium version of its other brands, and HUL has
brought the Magnum to the Indian market seeing all the new opportunity that the business is
seeing in India.
After a successful pilot in Chennai in 2013, Magnum was rolled out in Mumbai, Hyderabad,
Bengaluru and Pune in 2014, and it has been launched in Delhi and Kolkata this year. Magnum
will be available through multiple channels, including premium grocery, modern trade outlets
and also Magnum on Wheels vending carts.
An event was held to mark the launch of Magnum in Delhi with actor Kareena Kapoor as its
brand ambassador. Likewise, Epic by Amul which is launched in January this year is the

creamiest ice cream giving the Indian palate the richness and taste never experienced before.
Also, ice cream in this product has less aeration compared to regular ice creams. To make this
product more premium, the bars are coated with exotic Belgian chocolate, which is richer in taste
as compared to regular chocolates. Amul EPIC bars are available in two flavors i.e. Strawberry
Vanilla 80ml at Rs 35/- and Choco Almond 80ml for Rs 40/-.The prices are kept such to stay true
to objectives of Amul of giving the best quality at competitive price.
Belgium Choco bar, intensifying competition in the category where HUL has introduced its
premium global brand Magnum and HagenDazs is present with imported ice creams.

Whats in store?
The ice cream market in India is evolving from selling ice cream on cart and small kiosks to well
organized and premium parlors. Not only foreign brands like, Swensens, Haagen-Dazs,
Movenpick and Baskin Robbins have placed themselves in Indian market, but also regional
players like Pabrais, Natural, Milkyway are to name a few amongst others who are
experimenting with the local and the international ingredients to reach Rs 1,560crore fast
growing ice cream market by 2018.
Even big Indian brands like Amul, Vadilal, Kwality Walls and Mother Dairy is looking for
greater opportunities by spreading country wide distribution networks, outlets and menu, to
compete with the unorganized players to largely contribute in the industry.

Expanding the roots

According to a report by National Restaurant Association of India (NRAI), there are 35-40
brands present in the space with estimated 1900-2000 outlets. The highest presence is in metros
and mini metros with an equivalent of 34 per cent of the outlets, followed by tier-II cities with 23
per cent of outlets. At the same time, the regional players which are scattered around different
regions hold a sizeable part of market.
Milky way, which is a big player in the softy and ice cream business in Chennai, is expanding its
root via franchisee network in parts of India.Varun Goyal, owner, Milky way Ice Cream, says,
We have an ice cream factory in Chennai and have around 7000 square feet facility in Chennai
where we manufacture our ice cream with a mixture of freshly made syrups, sauces, creams and
caramels. We make around 300 varieties including the milk shakes, sodas etc.
Movenpick, which made a comeback in the country earlier this year, with a new partner to
operate and expand its business in the country, is planning to open its ice cream boutique in
Kolkata, Bangalore, Mumbai, Delhi and Chandigarh.

Tarun Sikka, Managing Director, Star Foods specialty that runs Movenpick ice cream boutiques
in India shares: Indians are now looking for premium tastes with international quality and
standards.

Making the gourmet ice cream

Players like Natural and Pabrais claims to offer 100 per cent natural ice cream, is introducing a
wide variety of natural and gourmet flavours in the ice cream market. Pabrais, which started its
operation in 2008 in Kolkata, has introduced unique varieties in the market like Wasabi ice
cream, Macha great ice cream and black sesame to name a few, in the gourmet section.
Meanwhile, it has also introduced authentic yet unique flavors like paan ice cream, musk melon
and water melon ice creams in 100 per cent natural ingredients category.
We make 100 per cent natural ice cream without using any artificial colour or essence for
flavors. In fact, our process of making ice cream is inspired from traditional methods and
techniques which result in a product with a good shelf life of about a year and has unmatched
quality and taste, assures KunalPabrai, One of the partner, Pabrais Fresh &Naturelle.

Delivering right at the door

Not only this, major player like Baskin Robbins, Natural, Nirulas, Vadilal, Gianis have entered
the home delivery segment. In addition, these players also offer services for organising birthday
parties, outdoor catering, etc, aiming to capture a larger section of the consumers.
Thereby, from all cited examples above, we can say that ice cream industry in India is growing
with new as well as global players in the market, who are ready to meet the target of Rs 1,560
crore by 2018.