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Association for ice cream makers to boost consumption

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BS Reporter Ahmedabad
Last Updated : Jan 20 2013 | 10:58 PM IST

In a bid to increase consumption and enhance quality standards, ice cream manufacturers in the cooperative and private sectors of India got together to form the Indian Ice Cream Manufacturers' Association (IICMA).

Based out of Ahmedabad, the 80 member strong association was formally launched on Saturday, after getting registered with the Registrar of Companies. “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.

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 the government added one per cent excise duty, over and above the VAT. Ice cream in India is considered a luxury and highly taxed . In Gujarat there is a 15 per cent levy of VAT on ice cream. As a contrast, in other countries, there are no tax on food item like ice cream. This requires particualr attention,” said Gandhi.

The members include the likes of Vadilal Industries, Havmor Ice-cream, Hindustan Unilever (Kwality Walls), Arun Ice-cream, Cream Bell Ice cream, Lazza Ice cream, Top N Town, Scoops Ice cream, and Dairy Day Ice cream. However, with the board's approval pending, Amul has in-principle agreed to be part of the association, said Gandhi.

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.

“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.

Meanwhile, the association is set to add over 200 ice cream manufacturers as members from across India.

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First Published: Jul 10 2011 | 12:34 AM IST

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