London Dairy targets Rs.100 cr from India by 2020

The Dollar Business Bureau 

London Dairy, the UK based ice-cream brand, is looking to double its revenues in India. It is planning to reach Rs.100 crore in revenues by 2020, by ramping up its distribution to 5,000 outlets.

Shweta Shrivastava, Head – Marketing, London Dairy, said that they came to India three years back and are creating a niche market in the premium ice-cream segment. The company is looking at a growth rate of 36 percent annually and plan to double the revenues from around Rs.40 crore, in the coming three years. They expect to reach Rs.100 crore by 2020.

The products of London Dairy are imported into the country through International Foodstuffs, a UAE-based company and manufactured under the licence of UK-based London Dairy Company.

At present, the major focus of the ice-cream brand is on direct retail network through its branded freezers. The products of London Dairy are currently available in 2,000 retail outlets and the company expects to reach 5,000 retail outlets by 2020, Shrivastava added.

Shrivastava pointed out that the ice-cream market in India saw a slowdown in the previous year, due to strict regulations enforced by the Government, related to food safety in the international brands segment.

"The FSSAI (Food Safety and Standards Authority of India) was performing its duty, and offered a level playing field. There were strict regulations, with regard to the way ingredients are written for tailored packaging and labelling of the brand. These need some time to comply with," she said. Taking action on the regulations the company has started 46 stock keeping units (SKUs) that were tailor-made for the ice-cream market in India, she briefed.

The other international brands of premium ice-cream that are competitors of London Dairy are Haagen Dazs, Cold Stone Creamery and Movenpick.

Industry experts report, the frozen desserts segment in India is estimated to be Rs.4,500 crore and is witnessing a growth of 15-20 percent per year.