London Dairy eyes to double India revenues in next three years; sets Rs 100 crore target
The brand is currently focussing on direct distribution through branded freezers
Premium ice-cream brand London Dairy is eyeing to double its India revenues to Rs 100 crore by 2020, as it plans to ramp up distribution to 5,000 outlets.
"We entered the country three years ago and are building the premium ice-cream category. We target a growth of roughly 36% 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," London Dairy's Head of Marketing Shweta Shrivastava told PTI.
London Dairy products are manufactured under licence from the London Dairy Company, UK and imported into India from UAE-based International Foodstuffs Company.
The brand is currently focussing on direct distribution through branded freezers. It expects to hit 5,000 retail outlets by 2020, Shrivastava added.
At present, London Dairy products are available in 2,000 outlets across the country.
Shrivastava said that the ice-cream market in the country witnessed a slowdown during the last year, especially with food safety regulations governing international brands in the category.
"The last year and a half was tough for players in the category," she pointed.
"The Food Safety and Standards Authority of India (FSSAI) was doing its job, and indulging in fair play. In terms of the way ingredients are written, or even customized brand packaging and labelling there were strict rules, which took the time to comply with," she added.
As a result, the company introduced 46 stock keeping units (SKUs) that were customized for the Indian market, she explained.
Until a few years ago, 80% of the market was made up of mass-premium players.
London Dairy competes with other international premium ice-cream brands including Cold Stone Creamery, Haagen Dazs and Movenpick.
According to industry experts, the Rs 4,500 crore frozen desserts category is growing at 15-20% annually in India.
Globally, the share of premium ice-cream category is about 5%.
In the next three years, London Dairy also expects to start manufacturing in the country.
"At the moment, the volumes in the entire premium category do not make sense, but in three years time we will probably consider it," she said.