HUL aspires to become the market leader in the ice creams and frozen desserts category
Published Date | 2018 September 21
One of the major market shareholders HUL is aspiring to become the market leader in the category of ice cream and frozen desserts. The company being one of the major players in the FMCG market is anticipated to grow positively.India: Hindustan Unilever is aspiring to become a market leader within the next few years in the category of ice creams and frozen desserts which is growing fast. Hence, it will continue to invest in physical and infrastructural expansion. HUL is expecting deeper penetration with the coming year in the particular category. With the development of more cold chain capabilities and improvement regarding the availability of electricity in rural areas the company can significantly grow and move towards achieving its desired position. Hindustan Unilever announced last month the acquisition of the Karnataka based brand of ice cream called Adityaa and it is expected to continue the persuasion of such inorganic growth opportunities to grow its reach further deep. The Executive Director, Foods & Refreshment Sudhir Sitapati said, “We are very bullish on this product category in India. We are targeting market leadership here in the next few years. For this, we are willing to invest for growth; to see it continue to grow at high double-digit volumes for us in the coming years.” Unilever who is a major player in the business of ice creams and frozen desserts understands very well the subtleties. They will their investment in building infrastructure and expansion for growth while also building new and stronger brands. According to the estimates, the Indian market is growing rapidly with 10-15% annual rate and if there are right inputs, the sector will continue to grow in the same pace. According to the industry analysis of BlueWeave Consulting, the food habits and disposable incomes of the tier I and II cities are shifting and evolving which has a very propelling effect on the industry. The segment of ice cream and frozen desserts is very competitive and it needs substantial capital investment in building the production and cold chain capabilities before a profit can be realised and also to sustain that during the long run. The segment of ice cream and frozen desserts is a very fast growing product category. It has immense headspace for expansion over the next years in India as the company’s penetration and consumption of people is significantly lower when compared to the global benchmarks. HUL has brands like kwality Walls, Cornetto, and Magnum, which cater to different sections of people. Magnum caters at high and premium price point while Kwality walls and Cornetto caters to the mid-segment. India is such an emerging market that there is opportunity of growth across all segments. Thus, with proper investment and technologies Kwality Walls can propel in the market.