Already a force to reckon with in Gujarat and Rajasthan, the company has invested Rs. 1.2 billion to boost manufacturing capacity of its plant in Ahmedabad, as well as a second plant in Bareilly, Uttar Pradesh. These plants will increase output from 225,000 litres per day to 375,000. Vadilal has also invested in the installation of extrusion technology at its Ahmedabad plant to improve the taste and texture of its products.
India's ice-cream market, estimated at Rs 25 billion, is growing at an annual rate of 18%. Of this, about Rs 1.5 billion is controlled by organized players - Amul, with annual sales of close to Rs 4 billion , is the market leader; while Vadilal is second with Rs 3 billion of revenues. But, competition is getting fierce, with regional brands like Nagpur's Dinshaws and Bhopal's Top n Town trying to eat into their business. More worrisome for Vadilal are the significant expansion plans chalked out by national chains Amul and Mother Dairy, as well as fellow Ahmedabad-based ice-cream maker Havmor.
