Ice cream maker Vadilal Industries today said it is targetting sales growth of 40% in 2011-12, with plans to capture 25% market share in the next 2-3 years.
The company has also launched a range of new products targetting premium ice cream segment of the market.
"Currently, Vadilal is the second largest ice cream player in India, with 20% market share. In the next 2-3 years, we are targetting 25% share," Vadilal Industries M D Rajesh Gandhi told reporters here.
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% in the last five years. "As against the industry average, we are working hard to achieve a sales growth of 40% in 2011-12," Gandhi said.
"In the next 2-3 years, we expect our premium products under Badabite, Flingo and Gourmet brands to contribute around 10% to the company's total sales," Gandhi said.
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," Gandhi said.
The company has increased its production capacity from 2.25 lakh litres per day to 3.25 lakh litres per day from April, 2011 onwards at its facilities located at Pundhra in Gandhinagar (Gujarat) and at Bareilly in Uttar Pradesh.
"In the last two years, the company has invested Rs 80 crore to expand manufacturing capacity and strengthen sales support," 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.
The firm's shares were trading at Rs 176 in the late afternoon trade on the Bombay Stock Exchange, up 5.71% from the previous close.
