With robust growth plans and diversifications lined up ahead, Ahmedabad-based ice-cream maker Vadilal Industries is planning to come up with a third manufacturing plant in one or two years time, a senior company official informed.
Without divulging minute details, Vadilal's managing director, Devanshu Gandhi said, "At the pace at which we are growing, we would require additional processing capacity in the years to come. As of now we have sufficient capacity with our two plants at Mundra in Gujarat and Bareilly in Uttar Pradesh combined. However, in a couple of year's time we would require another facility." He added that the third facility would not be in Gujarat.
The company, which is the second largest ice cream player in the country, on Friday launched flavoured milk called 'Power Sip' under the Vadilal Quick Treat umbrella brand. The new initiative is a part of the company's long term strategy to offer a wider range of frozen food products to consumers and its first major product launch in the beverages market. "This is our first major launch in the non-ice cream dairy sector and we plan to introduce more products in this space in future", Gandhi said.
Non ice-cream dairy sector comprises food items like butter, cheese, lassi, dahi among others. The company is yet to take a call which category to enter next.
It would manufacture the flavoured milk products at its Mundra plant.
"For starters, we would make 20,000 bottles per day. We have a net capacity of processing 20,000 litres of milk per hour combining both plants. At present, around 4,000-5,000 litres of milk per day would be required to make 20,000 bottles per day", Rajesh Gandhi, managing director, Vadilal said.
The company procures 100,000 litres of milk per day for making ice creams and other products.
Vadilal launched flavoured milk in three varieties on Friday in Ahmedabad, and plans to launch three more variants in a month's time.
"In the next six months Power Sip will be sold across Gujarat. Thereafter, we will introduce this new product in Maharashtra, Madhya Pradesh and Rajasthan. Rest of India would follow in the second and third years. Our target is to capture 5-7 per cent market share over the next three years and make Power Sip a Rs 30 crore plus brand", Devanshu Gandhi said. The flavoured milk market in India is estimated to be around Rs 400 crore and is growing annually at 15-20 per cent. The Gujarat market is estimated to be around Rs 45-50 crore, and is largely dominated by Amul.
Earlier in November, the company had re-launched the frozen foods brand 'Quick Treat' with more youthful packaging and a target to double turnover from the segment.
"Around 14-15 per cent of our turnover comes from the processed foods segment at present. The company's net turnover is around Rs 450 crore, of which Rs 50 crore is from the processed foods segment, and we are looking at doubling that in the coming three years.
Last year we clocked a 30 per cent growth in the segment, and this year we are targeting around 35 per cent growth", Rajesh Gandhi, managing director of Vadilal had told Business Standard at that time.
Besides this, Vadilal is also present in the branded aamras space. It has a capacity to process 10,000 tonnes per annum of mango and has plans of scaling it up by 20 per cent every year. It had expanded its ice cream making capacity from 2,25,000 litres per day to 3,25,000 litres per day in April 2011. At present, the company has a capacity to process 3,75,000 litres per day utilising 100 per cent capacity during summers.
