Vadilal plans new production unit in next two years

Last Updated: Fri, Dec 07, 2012 21:02 hrs

pWith robust growth plans and diversifications lined up ahead Ahmedabad-based ice-cream maker Vadilal Industries is planning to come up with a third manufacturing plant in one or two years time a senior company official informedppWithout divulging minute details Vadilals managing director Devanshu Gandhi said "At the pace at which we are growing we would require additional processing capacity in the years to come As of now we have sufficient capacity with our two plants at Mundra in Gujarat and Bareilly in Uttar Pradesh combined However in a couple of years time we would require another facility" He added that the third facility would not be in GujaratppThe company which is the second largest ice cream player in the country on Friday launched flavoured milk called Power Sip under the Vadilal Quick Treat umbrella brand The new initiative is a part of the companys long term strategy to offer a wider range of frozen food products to consumers and its first major product launch in the beverages market "This is our first major launch in the non-ice cream dairy sector and we plan to introduce more products in this space in future" Gandhi saidppNon ice-cream dairy sector comprises food items like butter cheese lassi dahi among others The company is yet to take a call which category to enter nextppIt would manufacture the flavoured milk products at its Mundra plantpp"For starters we would make 20000 bottles per day We have a net capacity of processing 20000 litres of milk per hour combining both plants At present around 4000-5000 litres of milk per day would be required to make 20000 bottles per day" Rajesh Gandhi managing director Vadilal saidppThe company procures 100000 litres of milk per day for making ice creams and other productsppVadilal launched flavoured milk in three varieties on Friday in Ahmedabad and plans to launch three more variants in a months timepp"In the next six months Power Sip will be sold across Gujarat Thereafter we will introduce this new product in Maharashtra Madhya Pradesh and Rajasthan Rest of India would follow in the second and third years Our target is to capture 5-7 per cent market share over the next three years and make Power Sip a Rs 30 crore plus brand" Devanshu Gandhi said The flavoured milk market in India is estimated to be around Rs 400 crore and is growing annually at 15-20 per cent The Gujarat market is estimated to be around Rs 45-50 crore and is largely dominated by AmulppEarlier in November the company had re-launched the frozen foods brand Quick Treat with more youthful packaging and a target to double turnover from the segmentpp"Around 14-15 per cent of our turnover comes from the processed foods segment at present The companys net turnover is around Rs 450 crore of which Rs 50 crore is from the processed foods segment and we are looking at doubling that in the coming three yearsppLast year we clocked a 30 per cent growth in the segment and this year we are targeting around 35 per cent growth" Rajesh Gandhi managing director of Vadilal had told Business Standard at that timeppBesides this Vadilal is also present in the branded aamras space It has a capacity to process 10000 tonnes per annum of mango and has plans of scaling it up by 20 per cent every year It had expanded its ice cream making capacity from 225000 litres per day to 325000 litres per day in April 2011 At present the company has a capacity to process 375000 litres per day utilising 100 per cent capacity during summersp

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