Vadilal Ind bets big on Frozen Foods business

Dairy and food products maker, Vadilal Industries Limited is looking to strengthen its presence in the frozen food segment by expanding its market reach in the Northern and Southern regions of the country.

Vadilal, which has been exporting its ready-to-eat (RTE) frozen foods in markets like US, Europe and Australia, has started its focus on domestic markets. The company has already tied up with retailing partners including Reliance Retail, Food Bazaar, Hypercity, D Mart and Star Bazaar.

"We are already present in Gujarat, Rajasthan and Maharasthra. But with super-malls being available in all metros and semi-metro cities, we are now looking to focus on expanding our presence in other parts of the country including North and South," said Rajesh Gandhi, managing director of the company. About 85 per cent of the total sales were exports. However, with organised retailing infrastructure becoming available in the country, the company started looking towards domestic market too.

Vadilal sells RTE frozen foods under the brand name of 'Quick Treat', while frozen vegetables are sold under 'Garden Fresh'. The RTE category holds about 25 per cent of Rs 38 crore turnover of frozen foods segment. "We expect our frozen foods segment to touch Rs 50 crore turnover by 2011-12, while Vadilal Industries would be able to achieve Rs 350 crore turnover during the fiscal," said Gandhi adding that frozen foods segment would hold about 15 per cent to the total business. The frozen foods market in India is expected to grow at 25-30 per cent per annum for next five years. The organised frozen food market is estimated at Rs 1,600 - 2,000 crore.

Vadilal serves popular snacks items like parathas, samosas and kachoris under the 'Quick Treat' segment. "Recently, we have added two Chinese cuisines including spring rolls and Chinese samosas under 'Quick Treat'. Going forwards some more international and domestic cuisines would be added to our RTE portfolio," added Gandhi.

The manufacturing facility for frozen foods is located at Dharampur near Valsad in south Gujarat with a capacity of 5400 tonnes per annum.