The ice cream business is becoming less seasonal and more lucrative
MUMBAI : Bengaluru: India's ice cream sector may attract more investments in the coming years as rising demand and easier access through quick commerce platforms have made dessert consumption less seasonal, experts and investors told Mint. Some recent deals in the space include Jungle Ventures's $20 million investment in Walko Food, which houses ice cream brands such as NIC and Grameen Kulfi, and Kedaara Capital's $150 million infusion into Dairy Classic Ice Creams Pvt Ltd (Dairy Day).
"It is a growing industry and is becoming more rounded with a full year of consumption. With newer types of retail formats and distribution channels emerging, there is immense opportunity for this sector to keep growing," said Ankur Bisen, head of retail at India's Technopak Advisors.
The industry has been bustling with investments even as Hindustan Unilever Ltd (HUL) said last week it is evaluating options for its India ice cream business following parent Unilever’s decision to demerge its €7.9 billion ice cream unit by the end of 2025. While industry experts have noted that this is a company-specific issue (aimed at controlling costs), they believe the overall sector looks promising.
At a macro level, with disposable incomes on the rise there is more potential for ice cream businesses to grow, as seen in the performance of some publicly listed companies, said Manu Chandra, founder of Sauce.vc, an early-stage, consumer-focused venture capital firm. In the past year, legacy ice cream companies such as Vadilal Industries and Hatsun Agro Product Ltd have seen their stock rise by 102% and 25% to ₹4,350 and ₹1,033, respectively.
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