Ice cream is a frozen dessert that is enjoyed by people of all ages. The market is primarily driven by the expanding food and beverage sector, and the presence of a dairy industry. In addition, the improvements in cold chain infrastructure, including temperature-controlled storage spaces, and application of efficient management procedures, are contributing to the market growth. Besides, ice cream consumption in India is significantly influenced by the climate and seasons. The hot and tropical climate of many regions in India drives the demand for ice cream as a popular refreshing and cooling treat during the summer months.
We wish to bring to the notice of the members that the consumers are increasingly attracted to premium, health-oriented, and innovative flavours, leading brands to launch plant-based, low-sugar, and high-protein ice creams. Besides, the government is offering incentives on investments in the food processing sector. This strategic approach positions India as an attractive destination for both domestic and international investors looking to capitalise on the growing ice cream market. Rising disposable incomes, urbanisation, and evolving consumer preferences are fuelling demand, especially in tier-1 and tier-2 cities.
The Indian ice cream market has grown four-fold in the last decade and is expected to reach 45,000 Crores in the next three years, according to data from the Indian Ice Cream Manufacturing Association (IICMA). Though seasonal in nature, it has witnessed huge growth helped by tailwinds such as rise in disposable incomes, changing consumer preferences, and expanding distribution channels. India has seen a fourfold increase in ice cream consumption over the past ten years. In fact, this sector is projected to reach 45,000 Crores in the next 3 years and more than 90,000 Crores in the next 8 years, said the IICMA statement. Moreover, factors such as stability of prices for essential ingredients, such as milk solids and packaging materials, have enabled the ice cream manufacturers to maintain competitive pricing and enhance profitability.
Highlights of Union Budget 2025-26 Highlights of the Union Budget 2025-26 presented on 01st February, 2025 by the Honourable Finance Minister Mrs. Nirmala Sitaraman are as follows:
In 2025-26, the Department of Animal Husbandry and Dairying, Government of India has been allocated 4,840.40 Crores.
The scheme that received the major budgetary support of 1,980 Crores is the Livestock Health and Disease Control Programme followed by 1,000 Crores for Dairy Development and 800 Crores for National Livestock Mission. The other major schemes/projects that received major allocation are the Infrastructure Development Fund ( 460 Crores), Livestock Census and Integrated Sample Survey ( 250 Crores) followed by that is Animal Health Institute ( 100 Crores). Under the Atma Nirbhar Bharat Abhiyan stimulus package, the Animal Husbandry Infrastructure Development Fund (AHIDF) was merged with the Dairy Processing & Infrastructure Development Fund (DIDF) for incentivising investments by individual entrepreneurs, private companies, MSME, Farmers Producers Organisations (FPOs), Section 8 companies and Dairy Cooperatives to establish: (i) Dairy processing and value addition infrastructure, (ii) Meat processing and value addition infrastructure (iii) Animal Feed Plant (iv) Breed improvement technology etc. The budget provision is also for supporting the working capital requirement of the State Co-operative Dairy Federation (erstwhile Support to State Co-operative Dairy Federations)
PERFORMANCE OF THE COMPANY:
With management efforts and improvement in the working, companys sales turnover has increased by 6.42% from previous F.Y. 23-24. Management has implemented various the strategies to increase the sales in the current year.
2 STRATEGY:
The strategy of the management is to introduce new varieties of ice cream & frozen desserts, more than the competitors, to provide quality of the products better than the competitors and to expand network of distributors/stockiest and dealers/retailers, larger than the competitors, to achieve volume growth of at least 50% over the current year.
3 BUSINESS OUTLOOK:
The consumption of ice cream has always been increasing. There is always good scope for business growth. The Companys outlook is always promising. The approach would be to continue with the growth, momentum with balancing risk.
Financial Ratios of the Company:
b) Financial Ratios
Ratio | Numerator | Denominator | FY 2024-25 | FY 2023-24 |
Current ratio (times) | Current Assets | Current Liabilities | 1.28 | 1.24 |
Debt-equity ratio (times) | Total Debt | Shareholders Equity | 2.29 | 1.76 |
Debt service coverage ratio (times) | Earnings before Interest and Tax | Debt Service | -1.68 | -5.34 |
Return on equity (%) | Net Profit after tax | Equity | -15% | -26% |
Inventory turnover ratio (times) | Cost of Goods Sold | Average Inventory | 1.52 | 1.37 |
Trade receivables turnover ratio (times) | Sales | Average Accounts Receivables | 7.42 | 9.39 |
Trade payable turnover ratio (times) | Purchases / Services Utilised | Average Accounts Payables | 3.29 | 2.78 |
Net capital turnover ratio (times) | Net Sales | Working Capital | 8.22 | 9.56 |
Net profit ratio (%) | Net Profit after tax | Net Sales | -3% | -7% |
Return on capital employed (%) | Earnings before Interest and Tax | Capital Employed | -0.04 | -0.10 |
Return on investment (%)* | Income generated from investments | Average Investments | -3% | -6% |
4 THREATS:
a. Increasing competition from other manufactures and foreign Companies will be a major problem.
Now a-days the markets are flooded with new local and regional players with cheaper products. There are few concerns like rising infrastructure and input costs, which the Company should take in mind. Since our goods is perishable, quick transport and proper storage are paramount importance. The refrigeration and deep freezing are important for company.
b. Marketing will be the most problematic area where improvements are called for. Continuous quality improvement will be the need of the hour for which urgent measures are called for from all stakeholders.
c. Consumer Behaviour:
A segment of the population may not prioritise milk quality, leading to a lack of willingness to pay for higher-quality products.
Your Company has been leveraging on the improvement given its economies of scale and with its inherent ability to adopt new technologies, which involves large investment in the production and distribution infrastructure affordable only by bigger companies like us.
Your Company enters new markets by expanding geographical areas, launching new product range, adopting new technologies, alternative market channel like online marketing. Your Company focuses on the consistent availability and procurement of quality milk throughout the year by improving the per capital yield of animals by applying scientific methods, genetic improvement, scientific feeding, properly managed animal husbandry practices etc., Your Company constantly educates the farmers on how to maintain quality and improve milk yield by arranging supply of good quality feeds to farmers.
5 INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY:
The Company maintains an adequate internal control system, commensurate with size and complexity of its business. Among other things The Company has a compact organization Structure which helps it run business operation smoothly. The Company has adequate internal control system, commensurate with the size and nature of its operations. The scope of the internal audit is to ensure that the control system established by the management is correctly implemented.
All assets and resources are used efficiently and are adequately protected. All internal policies and statutory guidelines are complied with. There is accuracy in timing of financial reports and management information.
6 HUMAN RESOURCE DEVELOPMENT:
At Vadilal, Human capital is our most crucial resource contribution towards the success of the Organization. Our aim is to ensure that only individuals perfectly matching the required trade skill sets, attributes and soft skills for each position are hired. Our constant focus is to orient and induct the hire resource with a structured induction programme. Apart from this, we have introduced several notable initiatives to retain and nurture our human capital.
7 CAUTIONARY STATEMENT:
Statements made in the Management Discussion and analysis describing business outlook, projections, opportunities and threats, etc. may be forward looking statement within the meaning of the applicable securities, laws and regulations. Actual results could differ from those expressed or implied. Readers are hence advised not to place undue reliance on these statements and are advised to conduct their own investigation and analysis of the information contained or referred to in this section before taking any action with regard to their own specific objections. Further, the discussion herein reflects the perception on major issues as on date and opinions expressed herein are subject to change without notice.
The Company undertakes no obligation to publicly update or revise any of the opinions or forward looking statements expressed in this report, consequent to any new information, future event or otherwise.
For and on behalf of the | |
Board | |
For Vadilal Dairy International | |
Limited | |
Sd/- | |
Shailesh Gandhi | |
Managing Director | |
DIN: 01963172 | |
Place: Boisar | |
Date: 01st September, 2025 |
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