Ce Cream Industry Profile

8/6/2019 Ce Cream Industry Profile

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ce Cream Industry Profile:

The ice cream industry in India is in many ways, reflective of the overallpopulation

distribution.The countrys population is primarily rural with approximately65% of the population living in

villages with a population of less than 5,000; this meansthere are well over 150,000 villages with a

combined population in excess of 650million.This has contributed to a highly fragmented industry that by

many estimateshas over 70,000 ice cream entities.Many of these are single family operations wherethe

product is made either in the home or in very small factories and sold on the streets.The 350 million

remaining people are concentrated in the cities where the industry isreasonably concentrated in the

hands of a few international and domestic firms.It isestimated that only 30% of the entire market is

organized and the industry meets theclassic definition of a fragmented industry, that is, one where there

is an absence ofmarket leaders with the power to shape industry events.

Ice creamor ice-cream is a frozen dessert usually made from dairy products,

such as milk and cream, and often combined with fruits or other ingredients andflavours. Most varieties

contain sugar, although some are made with other sweeteners. In some cases, artificial flavourings and

colorings are used in addition to (or inreplacement of) the natural ingredients. This mixture is stirred

slowly while cooling toprevent large ice crystals from forming; the result is a smoothly textured ice cream.The meaning of the term ice cream varies from one country to another. Termslike frozen custard, frozenyogurt, sorbet, gelato and others are used to distinguishdifferent varieties and styles. In some countries,like the USA, the term ice cream appliesonly to a specific variety, and their governments regulate thecommercial use of all theseterms based on quantities of ingredients.[2] In others, like Italy and Argentina,

one word isused for all the variants. Alternatives made from soy milk, rice milk, and goat milk are

Ice Cream Industryavailable for those who are lactose intolerant or have an allergy to dairy protein, or inthe case of soy milk for those who want to avoid animal products.

Ancient civilizations have served ice for cold foods for thousands of years. TheBBC reports that

a frozen mixture of milk and rice was invented in China around 200 BC,and in 618-97 AD, King Tang of

Shang had 94 men who made a frozen dish of buffalomilk, flour, and camphor. The Roman Emperor Nero

(3768) had ice brought from themountains and combined with fruit toppings. These were some early

chilled delicacies.In400 BC, Persians invented a special chilled pudding-like dish, made of rose water

andvermicelli which was served to royalty during summers. The ice was mixed with saffron,fruits, and

various other flavours. The treat, widely made in Iran today, is called"faloodeh", and is made from starch

(usually wheat), spun in a sieve-like machine whichproduces threads or drops of the batter, which are

boiled in water. The mix is thenfrozen, and mixed with rose water and lemons, before serving.


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Industry Competition:

As the industry evaluation would indicate the competition is significant.The70,000 some

participants is a large number but the more serious challenge comes fromthe top six national firms; Amul,

Kwality Walls, Mother Dairy, Vadilal, Dinshaw, and Arun.These top six firms dominate the market and

essentially control the organized market.Detail statistics are not available to indicate market share but

Ben & Jerry's estimatesthat these six firms control 40% to 50% of the urban market.

Historically MNCs have not achieved much success in penetrating the Indianmarket.There are

a number of possible explanations for this; the relative embryonicand disorganized nature of the market,

excessive government regulation that includedexcessive tariffs and the restriction that imported ice cream

could only be sold in hotels,and a highly fragmented and ineffective media.Most of these market

inefficiencies havebeen or are in the process of being corrected and Ben & Jerry's believes that

conditionshave ripened to the extent where MNCs can now effectively enter the market andcompete with

the domestic firms.

ndustry Growth:

The three factors of growth, population, per capital consumption, and price are allprojected to

increase over the next six years.Population is projected to grow at 1.8%, per capitalconsumption is

projected to grow at 5%, and prices are projected to increase at just over 1% per

year.(Overall the long-term projection for consumer prices is expected to rise at 3.5%, however,given the

intense level of competition Ben & Jerry's does not think it likely that ice cream priceswill rise that

fast.)Overall the market will grow from $245 million to $360 million, a compoundgrowth rate of 8%.Of the

$115 million in growth, 60% will come from increased per capitaconsumption, 24% from increased

population, and 16% from increase in price.

Top Ice Cream Industries List:


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Vadilal Ice Cream India

Amul Ice Cream

Kwality Walls

Mother Diary

Ben & Jerry

MTR

Short Profile of Ice Cream Companies:

Vadilal Ice Cream Ltd:

Vadilal ice cream division has always been a hot favorite with the people bothinside and outside

the organization. In India, the nameVad ilal is synonymous with IceCream. The Ice Cream industry in

India today has a turnover of Rs. 15 billion [US$ 330million]. A quarter of this comes from the house of

Vadilal alone. But thats no surprise,considering that we have the largest range of Ice Creams in the

country 120 plusflavors, in a variety of more than 250 packs and forms. The range includes

cones,candies, bars, ice-lollies, small cups, big cups, family packs, and economy packs.Something for all

tastes, preferences and budgets.

To make it convenient for our consumers to relish our complete range under oneroof, we have

set up a chain of Happiness Parlors Ice Cream boutiques so to say.Hordes of people flock to these

parlors daily because they know that our productscontain the purest and creamiest milk, and the freshest

and tastiest fruits and nuts.

Among our products are OneUp Chocobar and King Cone all-time favoriteswhich have today

attained the generic status. Another hit is our Kulfi traditional Indianmilk sweet. Some of our products

are a combination with confectioneries.

Since our products are highly perishable, quick transport and proper storage areof paramount

importance. Hence our refrigeration equipment and deep freezes areimported from companies, which are

world leaders in their respective fields. To ensure sufficient, timely and constant ice cream supply, we

have a Cold Chain Networkcomprising three manufacturing plants [totaling a production capacity of 1.25

lakh litreper day], about 23 C&FA, more than 500 Distributors and over 40,000 Retailers.

Amul India Ltd:

AMUL means"p riceles s " in Sanskrit. The brand name "Amul," from the Sanskrit


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"Amoolya," was suggested by a quality control expert in Anand. Variants, all meaning"priceless", are

found in several Indian languages. Amul products have been in use inmillions of homes since 1946. Amul

Butter, Amul Milk Powder, Amul Ghee, Amulspray,Amul Cheese, Amul Chocolates, Amul Shrikhand,

Amul Ice cream, Nutramul, Amul Milkand Amulya have made Amul a leading food brand in India.

(Turnover: Rs. 67.11 billion in2008-09). Today Amul is a symbol of many things. Of high-quality products

sold atreasonable prices. Of the genesis of a vast co-operative network. Of the triumph ofindigenous

technology. Of the marketing savvy of a farmers' organisation. And of aproven model for dairy

development.

Kwality Walls Ltd:

Kwality Ice Cream is the pioneer in the Indian ice-cream manufacturing industryand in 1956

became the first company in the country to use imported technology formanufacturing ice-cream on a

commercial scale. As the ice-cream industry exploded inIndia, in 1995 Kwality Group joined hands with

Hindustan Lever Limited and then therewas no looking back.

The Indian consumer market was introduced to KWALITY WALLS the result ofa collaboration between

global brand Walls and the leading Indian ice-cream brandKwality. Though the two giants eventually

parted ways, the collaboration made Kwality a Household name and created deep in roads for the brand

in the consumer market.Today, Kwality is not just a brand it is the ice-cream associated with the

Indiansummer; its the first choice in ice-cream for any child or adult during the scorchingIndian summers.

Kwality ice-creams are trusted not only for their rich, creamy flavours,but also for their trusted quality and

nutritious food value.

Mother Diary Ltd:

Mother Dairy Fruit and Vegetable Pvt. Ltd. offers the following products: MotherDairy

markets dairy products like Liquid Milk, Ice Creams, Flavoured Milk, Dahi, Lassi,Mishti Doi, Ghee, White

Butter, Table Butter, Cheese, UHT Milk, Dhara range of edible oilsand the Safal range of fresh Fruits &

Vegetables, Frozen Vegetables and Fruit Juices at anational level, through its sales and distribution

networks, for marketing food items.Mother Dairy milk (Bulk Vended Milk) is fortified with vitamin A @2000

IU per litre of milkas a part of social accountability. This program was started with the Mother Dairy,

Delhi,since February 1980and there after Mother Dairy is continuing this program on their ownas a social

responsibility without having any financial assistance from the Government aswell as since it is felt that


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BVM is generally consumed by the middle / lower middle / poorstrata of the society. It is also found that

the dietary practices adopted by these classesare deficient in Vitamin A.

Mother Dairy sources significant part of its requirement of liquid milk from dairycooperatives.

Mother Dairy sources fruits and vegetables from farmers / growersassociations. Mother Dairy also

contributes to the cause of oilseeds grower cooperativesthat manufacture/ pack the Dhara range of edible

oils by undertaking to nationallymarket all Dhara products.The company markets an array of fresh and

frozen fruit andvegetable products under the brand name SAFAL through a chain of 400+ own Fruit

andVegetable shops and more than 20,000 retail outlets in various parts of the country.Fresh produce

from the producers is handled at the Companys modern distribution

facility in Delhi with an annual capacity of 200,000 MT. An IQF facility with capacity ofaround 75 MT per

day is also operational in Delhi. A state-of-the-art fruit processing plantof fruit handling capacity of 120 MT

per day, a 100 percent EOU, setup in 1996 atMumbai supplies quality products in the international

market. With increasing demandanother state-of-the-art fruit processing plant has been set up at

Bangalore with fruithandling capacity of around 250 MT per day.

Ben & Jerry Ltd:

Since 2003, Ben & Jerry's have been working on a sustainable Caring Dairyinitiative, which

helps level out needs of the farmers and their cows, as well as theplanet's needs. The company has, so

far, reduced energy use on their 11 farms by 2%,and converted all their farms to green energy. Also, in

2002, Ben & Jerry's in the USAcommitted to reducing carbon dioxide emissions by 10% by 2007, and by

investing in avariety of efficiency measures, this target was achieved with ease - the USA nowproduce

32% less carbon dioxide emissions (per pint of ice cream) today (in 2008) thanin 2002. This initiative was

brought to the exclusive provider of milk for Ben & Jerry'sEuropean ice cream production, Beemster

Cheese, in 2007.

In addition to helping farmers and their cows, in 2001 Ben & Jerry's begansourcing vanilla,

cocoa, and coffee, for their smooth ice creams, from cooperatively runfarmer associations - these

community structures help promote their members' qualityof life, improve worker's benefits, and sustain a

commitment to their land andcommunities. In 2006, the world's first ever vanilla ice cream made with

Fairtradeingredients was launched by Ben & Jerry's. 2007 saw the release of Vanilla ToffeeCrunch, using

100% Fairtrade certified cocoa, sugar, and vanilla, and in 2008, ChunkyMonkey was guaranteed to be

traded in accordance with international Fairtradestandards as well.


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MTR Pvt Ltd:

MTR Foods Private Limited is amongst the top five processed food manufacturersin India. We

manufacture, market and export a wide range of packaged foods to globalmarkets that include USA, UK,

Australia, New Zealand, Malaysia, Singapore, UAE, Japanand Oman.

Starting with the legendary MTR restaurant in Bangalore, Indias silicon valley, we

now offer ''complete meal solutions'. Our wide range of products include ready-to-ea

curries and rice, ready-to-cook gravies, frozen foods, ice cream, instant snack and

dessert mixes, spices and a variety of accompaniments like pickles and papads.

Our deep understanding of culinary expectations and needs has resulted in manynew and

innovative products. Our investments in infrastructure and technology ensurethat we can scale rapidly

and bring these to market. Today, consumers across the globecount on us to bring them all-natural,

wholesome and delicious food that is alsoconvenient and no-fuss.

SWOT Analysis of Ice Cream Industry:

Strengths:

1)They are available in reasonable prices.

2)Known for product quality.

3)Strong presence of parent company in India.

4)The Brands almost generic to their product category

5)Wide variety of unique ice cream flavors.

Weakness:

1)The durability ofice-creams is not really good

2)it melts very soon

3)The industry has a complex supply chain management and the main issue is

traceability

4)Domestic business as well as many international markets are thriving

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