Strategic Analysis of Ice †Cream Industry of India

Indian Scenario – dairy industry †¢ India has one of the largest livestock population in the world. Fifty percent of the buffaloes and twenty percent of the cattle in the world are found in India, most of which are milk cows and buffaloes. †¢ Dairy development in India has been acknowledged the world over as one of modern India’s most successful developmental programme. Today, India is the largest milk producing country in the world. †¢ Milk and milk products is rated as one of the most promising sectors which deserves appreciation in a big way. When the world milk production registered a negative growth of 2 percent, India performed much better with 4 percent growth. The total milk production is over 72 million tones†¦show more content†¦India is a way too far behind even in terms of the world average per capita ice cream consumption of 2.3 liters per annum. Besides desserts, ice cream also vies for attention with other like foods for example in summers with cold drinks, coffee, juice, etc. ïÆ'Ëœ Ice cream distribution in India typically involves a distributor, wholesaler and retailer. Most domestic brands have small regional operations, with plants situated near their major markets due to the lack of cost-effective cold chain facilities. National brands have owned or leased cold storage facilities in major metropolitan areas, which ship to distributors or direct to retailers. Some major brands have begun serving smaller cities by acquiring smaller plants and improving distribution networks. Distributors margins are about 18-20%. ïÆ'Ëœ There are an estimated 70,000 retail ice cream outlets in India, including both fixed shops and mobile vendors -- pushcarts, tricycles and three-wheelers. The most popular form of ice cream is 100-150ml cups, priced at 9-14 rupees (21-33 cents) for the impulse market. Also targeted at the immediate consumption market are bars, sticks and cones at Rs. 5-20 (12-47 cents). One-liter family packs retail at Rs. 52-60 ($1.21-1.40) for vanilla and strawberry and Rs. 68-90 ($1.58-2.09) for premium flavor. ïÆ'Ëœ The growth in Ice cream industry has been primarily due to strengthening of distribution network and cold chain infrastructure. Channels such as Mobile Vending UnitsShow MoreRelatedThe Dairy Industry Of India Essay3900 Words   |  16 PagesABOUT DAIRY INDUSTRY Introduction: The dairy sector in India has witnessed a remarkable development in the last decades, India has become one of the largest producers of milk and value-added dairy products in the world. The dairy sector has developed by cooperatives in many parts of the country. During 1997-1998, the states (Haryana, Delhi, U.P.) had 20,876,000,000 tons production capacity, which amounted to 40.719 billion tons by 2014. 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