Wednesday, September 05, 2007

Indian Ice Cream Market

Industry Snapshot
  • Market Size - 800 Crores
  • Ice Cream market is growing at 10 to 12%
  • Ice creams traditionally are a low volume business
Players

  1. Amul - Market Leader with share of 36%
  2. HLL - Kwality Walls - 2nd biggest player
  3. Mother Diary
  4. Arun - Chennai Based Hatsun Agro Product
  5. Metro Daily - Kolkata based
  6. Aavin - Tamil Nadu based
Recent Happenings

1. HLL's Moo (Nutritional Ice Cream) - targeted at Kids
2. As Mother Dairy has competency cold chain distribution as they have Safal brand ( frozen peas, corn, juices and mixed vegetables) under their portfolio, they have expanded from Delhi to Bangalore, Hyderabad, Chennai, Punjab, Rajasthan, UP & Uttaranchal. Due to this and other brand extensions in the pipeline, Mother Diary expects their turnover by 20% this year over their present size of Rs. 2800 Rs. Cr.
3. Aavin, the cooperative sector milk and dairy products marketer in Tamil Nadu, has launched a low sugar variant of ice creams in the market. According to an official press release, the ice cream `without added sugar' is ideal for diabetics and safe for children and mothers-to-be. This variant has just 80 calories and has 16 mg of sweetener against 8,000 mg of sugar in the traditional ice creams. The ice cream conforms to the US and domestic food regulations,
the release said
4. GCMMF launched its pro-biotic ice creams that have live beneficial culture that confer beneficial health effects such as improving immunity and digestion and strengthening bones. It also introduced a sugar-free ice cream range and is planning a Web site on ice creams. There two ranges are - Amul Prolife and Amul Sugarfree. According to Mr. R.S. Sodhi, GM Marketing, Amul, Amul hopes to build the pro-biotic range into a Rs 100- crore brand within the next two-
three years. While Amul had earlier tested this market segment through the launch of an isabgol-enriched ice cream, this is company's first full-fledged attempt at capturing a good share of the pro-biotic enriched foods market in India. Both the brands are available in 125 ml (Rs 15), 500 ml and 1.25 litre (Rs 120) packs in five flavours, vanilla with chocolate sauce, strawberry, chocolate, shahi anjir and fresh litchi. On the retail front, it intends to hike its Amul parlours from 600 to 10,000 by 2010
5. Arun Ice Creams, the ice cream brand from Hatsun Agro Product Ltd, is launching a new range of ice cream outlets, Arun Ice Creams Unlimited. Hatsun Agro, which is the largest private dairy in India, plans to make available its range of dairy products at the conventional Arun ice cream outlets operated through franchisees. This network will also be expanded. The new range of outlets will sell ice cream by the scoop, `aggressively priced' at Rs 20 a scoop of 100 gm, Mr Chandramogan said. A feature of these parlours will be the wide selection of flavours, over 25 flavours with five new substituted for the existing ones
each month to ensure more variety. The company is investing over Rs 15 lakh in each of these outlets.

Few Brands/ Target Consumers

1. YOuth Centric - Chillz
2. Kids - Moo
3. Teenagers - Cornetto
4. Health COnscious - Amul Sugarfree & ProLife

This summer mother diary targeted children with the baseline — `Jagaye Andar ka Bandar' while it is luring adults with the message `Give In'.
Interesting piece of information: Hawking is not allowed in Mumbai which makes 1/3rd of business for HLL. Rest is contributed by retail outlets

Future of Ice Cream Market in India
Ice Cream market will expand with increase in number of malls - HLL has been increasing their ice cream outlets - Swirl. Few years consumers use to go out for walk after dinner and use to buy ice creams from hawkers. But now consumer who often visit malls for entertainment
prefer to buy ice creams during different times of the day as it is visible upfront and feel like spending Rs. 50 for that tasty chocolate swirl with cake and nuts. As marketers are understanding the different needs of consumers, be it health conscious people, kids, youngsters, young etc, and coming up with products specific for them... with portfolio of flavors, consumer today has plethora of options at hand to choose from and therefore high probability of buying one more scoop of ice cream. Also with increasing wallet size and innovative modern retail formats, it has definately given a philip to the ice cream industry in India.

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7 Comments:

Blogger Udaiveer said...

Nitin,

Fascinating stuff about the ice cream market in India. Have you heard anything recently about the success of healthier (low fat, low sugar) ice creams in India?

thanks!

January 08, 2008 2:10 PM  
Blogger Sunil said...

Hi,
I want to know the reference for this information.
Regards,
Sunil Jadoo
09903971561

April 17, 2008 2:57 PM  
Blogger nidhi said...

hi
interesting study of ice creams. do you also have any knowledge about how ice creams came into existance and how were they distributed in india since early times? m doing a research on ice creams and any help would be appreciated.

hoping for a reply
nidhi
nidhidifferent@gmail.com

October 11, 2008 11:16 PM  
Blogger Rupesh said...

this study has given me some details but wat abt some of the brands like cream bell & havmor ? they too are in the market. wats their tentative market share ?

December 20, 2008 11:40 PM  
Blogger Rupesh said...

pls let me know the market share of all brands available in the market if possible.
thanks,
rupesh.(dairy technologist)
(9871627460)

December 20, 2008 11:42 PM  
Blogger Sarah said...

Hi, my name is Sarah and I'm a student from a Swiss university. For my management course I have to do a case study about the entrance of the Swiss company Mövenpick/ Nestlé into the Indian ice cream market. My problem: It's sooo difficult to find any information about it... Do you know anything about that topic? Do you know where I could find some suitable information?
Thanks so much for responding to this comment!

With warm regards from Switzerland, Sarah

October 15, 2009 9:49 PM  
Blogger DON said...

hi Sarah, pls scratch google. may be u can find studies on how MNCs entered India & why they actually entered. HUL's Kwality Walls is also there in India. jusr check it out.
rupeshdeadly@gmail.com

October 16, 2009 12:44 PM  

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