RIL Getting into the Rs. 20,000 Ice-cream Industry? // Business Case Study // ReadOn Daily

Mangoes ACS and ice creams pretty much all you need to beat the scorching heat in summers ril already has its foot in the first two categories it is the largest exporter of mangoes in Asia and it makes ACS under the reconnect brand what’s left to stay on top of the minds of people in summers a foray into the ice cream space.

What is ril going to do foray into the ice cream space according to reports let’s take a look at ril’s master plan to disrupt the ice cream sector in India ril already had people sweating with its entry into the cola space but now it seems that it wants to leave no aspect of Summer untouched think summer think Reliance seems to be its motto so it.

Plans on entering the ice cream space and the frozen food space in general in India reports claim that it will launch ice cream under the independence brand its newly launched affordable fmcg brand it is apparently in talks with a gujarat-based manufacturer to start its production now selecting Gujarat as the launch pad for its ice cream and Frozen.

Foods brand is super interesting why because Gujarat screams for ice cream it accounts for 12 of India’s total ice cream consumption which is 1.3 billion dollars some of the best ice creams in India are made in Gujarat and well ril also has roots in Gujarat but while Gujarat may be a lucrative starting point it may also be the most difficult.

To crack first the amul challenge Gujarat is the home ground of amul the leading ice cream maker in India with a 40 market share but to be fair ril could take on amul after all it is roped in RS sothi former managing director of amul during his 12-year tenure at amul Mr sodhi scaled amu’s revenue from 9774.27 crore rupees in FY 11 to 46.

481 crore rupees in FY 22 plus we’ve repeatedly seen how ril completely changes the pricing of any sector that it enters and this this could be amul’s weakness right now it cannot afford a price War now why because of the rising costs of production due to the high cost of cattle feed and a fall in productivity due to lumpy skin disease.

Milk prices are Sky High right now and amul has been passing on these costs to customers but if ril enters the space with affordable ice creams people could easily switch the Second Challenge gujarat’s unorganized players now this would be a major challenge to cater to gujarat’s love for ice cream a lot of unorganized players have sprung up in.

The state from mango Buffy ice cream to pan ice cream to even garlic ice cream these players are constantly innovating with ice cream to keep up with gujarat’s taste buds and growing demands even the organized players like have more and vadiral are constantly launching new flavors have more currently has over 160 flavors and launches three new flavors.

Every quarter yup gujarat’s ice cream space is ironically pretty heated up now let’s take a step back and look at the country level opportunity for ril India’s per capita ice cream consumption is 400 ml this is much less than the us at 22 000 ML and China’s 3000 ml per capita ice cream consumption but demand for ice cream in India is steadily.

Rising in 2022 ice cream saves Rose 45 as compared to 2019. the 20 000 crore rupee ice cream industry is growing at a kagger of 17.69 but cracking the space is not easy Rising production costs irregular electricity Supply and improper cold storage systems are just a few problems in this industry Plus in urban India Innovation becomes a.

Challenge you always have to keep up with the changing tastes of the younger generation the space is huge the space is heated up how does ril plan to compete with the unorganized players that make up about 50 percent of the market only time will tell our hopes are high after all ril wins every space it enters and we are super.

Excited to try out Innovative flavors that rail will soon be launching what are your thoughts on ril’s entry into the ice cream business see you in the next episode Jai Hind