London Dairy targeting Rs 100 corer revenue from India by 2020
Mumbai, May 29 (PTI) Premium ice-cream brand London Dairy is eyeing to double its India revenues to Rs 100 crore by 2020, as it plans to ramp up distribution to 5,000 outlets.
“We entered the country three years ago and are building the premium ice-cream category. We target a growth of roughly 36 per cent year on year and will double our revenues from about Rs 40 crore in the next three years. We expect to touch Rs 100 crore by 2020,” London Dairys Head of Marketing Shweta Shrivastava told PTI.
London Dairy products are manufactured under license from the London Dairy Company, UK and imported into India from UAE-based International Foodstuffs Company. The brand is currently focusing on direct distribution through branded freezers. It expects to hit 5,000 retail outlets by 2020, Shrivastava added. Currently London Dairy products are available in 2,000 outlets across the country.
Shrivastava said that the ice-cream market in the country witnessed a slowdown during the last year, especially with food safety regulations governing international brands in the category.
“The last year and a half was tough for players in the category,” she pointed.
“The Food Safety and Standards Authority of India (FSSAI) was doing its job, and indulging in fairplay. In terms of the way ingredients are written, or even customized brand packaging and labeling there were strict rules, which took time to comply with,” she added.
As a result, the company introduced 46 stock keeping units (SKUs) that were customized for the Indian market, she explained. Until a few years ago, 80 per cent of the market was made up of mass-premium players. London Dairy competes with other international premium ice-cream brands including Cold Stone Creamery, Haagen Dazs and Movenpick.
According to industry experts, the Rs 4,500 crore frozen desserts category is growing at 15-20 per cent annually in India. Globally, the share of premium ice-cream category is about 5 per cent. In the next three years, London Dairy also expects to start manufacturing here.
“At the moment, the volumes in the entire premium category doesn’t make sense, but in three years time we will probably consider it,” she said. PTI DSK NRB SOM ABM
Source : Indiatoday
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