Vadilal Industries Posts Sweet First Quarter Results
Vadilal Industries Limited has announced a hefty 58.74% increase in net profit at Rs 21.36 crore for the first quarter of 2015, which ended on June 30. Net sales for the period were up 8.82% to Rs 182.40 crore over Q1 of 2014, while earnings per share amounted to Rs 29.72 compared to Rs. 18.72.
The Ahmedabad, Gujarat-headquartered company is the producer of India’s second largest ice cream brand. It is also a maker and exporter of processed foods ranging from frozen vegetables to Quick Treats brand Indian breads, snacks and curries. Other businesses units within the group are engaged in real estate, chemicals and Forex, metal and bullion market consulting.
“We have worked on installing the best technologies and machinery in the past couple of years,” said Rajesh R. Gandhi, chairman and managing director. “Our investments are not only paying off, but are also assisting us for further innovation in product lines. With better-equipped and upgraded production facilities in Gujarat and Uttar Pradesh [capacity is now 3,25,000 liters per day] we will focus on introducing more innovative products for consumers. We are also focusing on further expanding our marketing and distribution network so as to reach out to many more consumers in our target markets.”
The company’s processed foods division is focusing more on branded products, as the margins are better in that segment compared to the unbranded or private label business. Vadilal is also looking to expand its portfolio and sharpen attention to customer demographics through premium product ranges for children and young adults.
89 Years of History
The story of Vadilal starts with the opening of one soda fountain outlet opened in Ahmedabad in 1926. As time passed the shop became famous for its authentic and wide variety of flavored ice creams. Today, Vadilal offers 50-plus flavors in more than 250 packs and forms. The assortment includes cups, cones, bars, lollies, family and economy packs distributed via a network of 60,000 retailers, 750 distributors, 300 vehicles and 50 CNF and 300 vehicles. Also offered is a wide line of super-premium ice cream, in addition to juices, candies and other frozen desserts.
Beyond the frozen food aisles grocery stores and supermarkets, its sells ice cream at more than 200 Vadilal Scoop Shops and 10 Vadilal Hangouts across the nation. In 2013 the company has also launched Melt In, the first artisanal gelato café outlet in the country.