London Dairy To Target Rs 100 Crore In Revenue By 2020
London Dairy, the UK-based premium ice-cream brand, is expecting to increase its revenue in India to Rs. 100 crore by 2020. The company also has plans to increase its distribution to nearly 5000 outlets in the country. London Dairy products is manufactured under London Dairy Company’s license and is imported to India by UAE-based International Foodstuffs Company.
London Dairy is part of the growing premium ice-cream products sector in the country and hopes to attain maximum revenue by 2020. Speaking about the company’s targets, Shweta Shrivastava, said, “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.”
Currently, London Dairy products are available in over 2000 retail outlets in the country and the number is expected to rise to 5000, according to the company. Although the sector has seen its share of ups and downs, the market specifically faced a downward trend last year due to regulations posed by the Food Safety and Standards Authority of India (FSSAI). “The last year and a half was tough for players in the category. 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 labelling there were strict rules, which took time to comply with, ” added Shrivastava.
The competition for the growing frozen desserts category is on the rise with major international brands choosing the Indian market to increase its revenue. The market currently is growing at a 15-20 percent rate with Rs. 4,500 crore revenue in this specific category. Recently, US-based ice-cream brand, Cold Stone Creamery, entered the Indian market with the opening of its first outlet in Kochi. Other international brands such as Baskin Robbins, Haagen Dazs and Movenpick has also made their presence known in the country among the local players such as Kwality Walls, Amul and Mother Dairy. London Dairy hopes to compete with these brands and is in talks to start production of its products in India within the next three years. “”At the moment, the volumes in the entire premium category doesn’t make sense, but in three years time we will probably consider it,” added Shrivastava.