Icecream Industry Apr, 28 2017

Vadilal currently has two promising franchise retail concepts called Hangout and Scoop Shop: Devanshu Gandhi

Vadilal Industries play a master stroke with Vadilal Scoop Shop and Vadilal Hangout.

By R Mathur
Vadilal currently has two promising franchise retail concepts called Hangout and Scoop Shop: Devanshu Gandhi

Vadilal Industries has fast tapped the market through its ice cream boutiques and parlours. Devanshu Gandhi, Managing Director, Vadilal Industries Ltd, shares a word on the changing face of ice cream industry in India and the target locations chalked out by the company for expansion.

Share a word on your franchise model?
Vadilal currently has two promising franchise retail concepts called Hangout and Scoop Shop. These are ice cream boutiques where a consumer can enjoy variety of ice cream flavours in different formats such as sundaes, shakes, sodas, floats, etc. Today, we have 320 such parlours in India with additions being made every month.

How many units of Vadilal are franchisee-run?
Currently, we have 320 franchisee-run Vadilal Scoop Shop and Vadilal Hangout parlours spread across India. Over and above these, 10 Vadilal Hangout parlours are owned and controlled by the company.

What are your expansion plans via franchising?
The Scoop Shop franchise model has seen great success in Haryana, Punjab, Himachal Pradesh and Uttar Pradesh. We have aggressive plans to expand our reach further in these states in the coming years. We are very positive about our parlour concepts and willing to explore any new market that may have growth potential. We are looking forward to open parlours in Lucknow, Varanasi, Faridabad, Chandigarh, Jalandhar, Jaipur, Jodhpur and their surrounding areas.

Share a word on the ice cream industry in India.
India has been obsessed with ice creams right from the time it achieved independence. Today, it is one of the most profitable industries geared with the latest technology and high-end development in manufacturing equipment. Over the past five years, the organised ice cream market in India has grown at a rate of 16% CAGR. The biggest challenge for this industry remains to be the high input cost of milk and milk products

What is your USP?
Vadilal has a strong brand identity, good product quality, timely supply and extensive reach. It has a large range of ice creams in the country with over 150 flavours, sold in a variety of more than 300 packs and forms.

What are the challenges faced by you?
The major challenge faced by the ice cream industry is the sudden and frequent change in the prices of milk and its by-products. With thhhe rise in our input costs, our end-consumer pricing also rises. With severe competition in the market, it becomes difficult for us to cope up with such cost factors and in turn the customers bear the brunt of dearer prices.

What are the recent trends in ice cream industry in India?
Ice cream, which was considered as an indulgent category in the past, has now evolved to be perceived as a snacking option by consumers. Improving cold storage conditions, changing consumer taste and an increasing purchasing power has led to a lot of international players entering the market. Growth of the industry can also be attributed to large investments in advertising and infrastructure development, diversification and widening of product portfolio.

Related: Empowering rural retailers via franchising

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