The Rs 2,500 crore ice cream industry in India is expected to grow by 25 per cent this fiscal despite a lesser profit margin, a leading city based ice cream manufacturer said here today.
P Vanjimuthu, Director, Vita Food and Beverages, which produces Boomerang ice cream, told reporters here that cost of production has gone up drastically due to increased power charges.
Besides, generator costs and prices of imported raw materials have also gone up leading to fall in profit margin he said.
But consumption wise there is an increase in India, particularly in North and West, he added.
Per capita consumption of ice cream in India was 250 ML particularly attracting the younger generation. The North and West contribute 70 to 75 per cent of the total market size while South stood at 20 per cent and East 10 per cent, he said.
Vanjimuthu claimed ice cream is still considered a luxury product in South and has a great market potential. He said the public was also health concious and wary of infection and throat pain if more quantity was consumed.
He said the unorganised sector had a 55 per cent share in the ice cream market in the south.
Vanjimuthu said the company which now has Rs seven crore turnover, would launch take away home packs in a month and also plans to expand by appointing franchisees across the State
He said the industry was not in a very healthy state and it is a challenge to sustain and survive in the business, which requires high investments due to various policies and also power cuts.
