HOT ON COLD

How Amul navigated the tricky terrains of India's ice cream market

- AKSHARA SRIVASTAVA

On the one hand, ice cream is hot this summer, with healthy sales growth of 15 to 20 per cent being projected as the mercury rises to unprecedented levels in parts of the country.

According to data from market intelligence firm Kantar, sales of ice cream and kulfi skyrocketed in April this year, experiencing 58 per cent volume growth. According to Statista, the Indian ice cream market amounts to $2.32 billion in 2024, and is expected to grow at a compound annual rate of 4.53 per cent until 2028.

Not surprisingly, new and creative flavours are descending on shops. A report in the South China Morning Post last month spoke of artisanal ice cream in "creative flavours" such as betel leaf, chilli basil, sesame candy, and masala chai - being launched in India.

On the other hand, India is proving to be tricky terrain for ice cream sellers, with one large company "evaluating its options".

Amid this shifting landscape, the one constant is Amul.

Gujarat Cooperative Milk Marketing Federation, the cooperative that markets brand Amul, lords it over the ice cream market with a share of more than 55 per cent.

What is it that has worked for it?

End to end

"Since the launch of our ice cream business in 1996, and its subsequent expansion from the next year itself, we realise that the only way to grow is to operate on both ends of the market-simultaneous expansion of both production capacities and distribution channels," says Jayen Mehta, managing director, Amul India.

Distribution, in particular, is critical here, requiring an extensive cold chain network if a brand wants to go national.

"Ensuring end-to-end cold chain infrastructure is also a huge factor impacting operation and profitability in the category. Distribution is an expensive proposition in the market and it needs significant capex for manufacturing and distribution," says Soumya Dwibedi, partner, Consulting, Deloitte India.