Ice Cream Market - India
December 2008

Executive Summary
Estimated worth USD XX mn in 2008, expected to grow to USD YY mn in 2009
Market North and west account for a% of total sales
High profit margins ranging between b-c%
LE
Drivers: Opportunity to capitalize on low consumption levels; growing institutional sales
Drivers &
Challenges: Competition with the unorganised sector on price and quality, and lack of well-
Challenges
P
developed cold chain facilities
M
Trends SA
Large investments in advertising
Diversification of product portfolio targeting specific consumer segments
Partnerships and franchises pursued to boost distribution
Falling costs of raw materials offsetting rising milk and sugar prices
A brand is the market leader
Competition B and C brand are other strong players
The premium segment is dominated by U
ICE CREAM MARKET – INDIA.PPT 2

•Market Overview
•Drivers & Challenges
•Trends
•Competition
•Key Developments
ICE CREAM MARKET – INDIA.PPT 3

The industry is growing steadily with the northern and western
regions accounting for the largest consumption
Overview Size and Growth
•Size and Growth
USD mn
Worth USD XX mn in 2008 V
250 a%
Growing at a% p.a. in 2005-2008 U
200 Z
Forecast to increase by b% to reach USD YY X Y
150
LE
mn in 2009
100
P
•Characteristics 50
Northern and western regions together 0
SAM
account for c% of total market consumption
Profit margins range from u% to v%
depending on the product segment
w% of ice cream sales occur during the
2005 2006
Geographic Distribution
2007 2008 e 2009 f
summer months of April-June North
x% of sales is through street vendors a%
Vanilla is the highest selling flavour and
together with strawberry and chocolate it West d%
accounts for y% of the market b%
East
c%
South
Source:
ICE CREAM MARKET – INDIA.PPT 4

Drivers & Challenges
Challenges
Low quality products and
competitive pricing from unorganized
sector
Drivers
Lack of cold chain facilities
Low consumption levels
Developing institutional channel
ICE CREAM MARKET – INDIA.PPT 5

Key Trends
Product diversification to target
LE
Large scale advertising
specific segments
MP Trends
SA
Benefits derived from falling
Franchises and strategic
partnerships to enhance
costs
distribution
ICE CREAM MARKET – INDIA.PPT 6

X is the market leader with strong competition from U,V and W
Major Players Market share
•Fiercely competitive due to attractive
economics with profit margins ranging u%
Unorganized
between a-b%
•Organized sector comprises X, Y, Z and a
LE
number of regional brands
•Amul is the market leader and is at the
forefront of targeting the rural market
MP v%
Organized
A
•For most national players viz. U, V and W, Company U
revenue from ice cream accounts for a
small portion of their total revenues
•Premium segment:
S
X is the single largest premium ice cream
Company Z
f%
a%
b% Company V
brand
c%
New entrants include X,Y and Z e%
d% Company W
Company Y
Company X
A well established unorganized sector creates a fiercely competitive environment for
A well established unorganized sector creates a fiercely competitive environment for
the larger players
the larger players
Source:
ICE CREAM MARKET – INDIA.PPT 7

Thank you for the attention
The Ice Cream Market report is a part of Research on India’s Food & Beverage Industry Series.
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ICE CREAM MARKET – INDIA.PPT 8