This will lead to increase in trading volumes and liquidity
EDITOR’S SYNOPSIS:
- Vadilal Industries has been listed on the BSE since 1990
- Promoters’ stake in the company is 61.94% as of March 31, 2011
- Vadilal is the second largest ice cream player in India and it is also one of the leading players in the organised processed food sector
Trading of Vadilal Industries Ltd shares has begun on the National Stock Exchange (NSE) with effect from 15 June, 2011. This will lead to greater visibility for the company as well as increase in liquidity and trading volumes. Vadilal Industries was first listed on the Bombay Stock Exchange (BSE) way back in 1990.
On the first day of trading, the company’s share price on NSE opened at Rs. 169.70 per share and touched an intra-day high of Rs. 183.70. The total traded quantity stood at 5.19 lakh shares on the first day of listing on NSE.
Talking about this latest development, Vadilal Industries managing director, Mr. Rajesh Gandhi said, “The listing of our flagship company’s shares on the NSE is a major milestone for us and it will significantly benefit all our existing shareholders as well potential new investors. NSE is the largest stock exchange in India in terms of trading volumes and has a very wide reach across India. Vadilal Industries has embarked on a new journey and its aim is to become an Indian MNC in ice creams and frozen foods, and to provide products and services at an affordable price without compromising on quality.”
As of March 31, 2011, promoters’ stake in the company was 61.94%, FIIs holding stood at 6.97%, bodies corporate holding was 9.33% and rest was with the public. Now, 7,187,830 shares of the company are listed on the NSE too.
Listing on NSE provides qualifying companies with the broadest access to investors, the greatest market depth and liquidity, cost-effective access to capital, the highest visibility, the fairest pricing, and investor benefits. NSE trading terminals are situated in various cities and towns across the length and breadth of India.
Vadilal has embarked on a high growth trajectory by aiming for a 40% growth in sales for financial year 2011-12 on completion of its Rs 80 crore expansion-cum-modernisation projects. With the latest state-of-the-art machines in place, the company has emerged as the largest player in the cones, cups and candies categories in the Indian ice cream market.
With the completion of its expansion-cum-modernisation projects, Vadilal’s production capacity which was 2,25,000 litres per day earlier has grown to 3,25,000 litres per day from April 2011 onwards. As against an average industry growth of around 15%, Vadilal is working hard to achieve a sales growth of 40% in 2011-12. Vadilal plans to increase its share in the organised ice cream market to around 24% from the current 20%.”
About Vadilal Industries Ltd:
From a small outlet in Ahmedabad over 80 years back, Vadilal Industries Ltd has today emerged as India’s second largest ice cream player. The company is also one of the largest processed food players in India with significant exports of frozen vegetables and ready to eat snacks, curries and breads. Vadilal’s aim is to become an Indian MNC in ice creams and frozen foods, and to provide products and services at an affordable price without compromising on quality.
Vadilal Industries has two ice cream production facilities – one at Pundhra in Gandhinagar district, Gujarat and the other one at Bareilly in Uttar Pradesh. It has a very strong distribution network of 50,000 retailers, 250 SKUs (stock keeping units), 550 distributors, 32 CNF and 250 vehicles for delivery of goods. Through the franchisee route, Vadilal has set up over 140 ‘Happinezz’ retail outlets for selling ice creams and new ones are coming up every month.
Vadilal entered the processed foods industry to optimise utilisation of its extensive cold chain network in the 1990s. It currently caters to the domestic and export markets with products such as frozen vegetables and ready to eat snacks, curries and breads. This business is poised for strong growth in the coming years owing to greater urbanisation within India and increasing demand for Indian food amongst developed regions like the USA and western Europe.
The company’s national ice cream market share would have been even higher but for the fact that it does not operate in major consuming regions like Maharashtra and the four southern states as these are covered by another faction of the Vadilal family.
