Here's why Vadilal Industries share price jumped 14% in trade on April 1

Vadilal Industries share price: Ice cream and frozen dessert manufacturing company Vadilal Industries shares were buzzing in trade on Tuesday, April 1, 2025, as the scrip rallied up to 14.29 per cent to hit an intraday high of Rs 5,250.95 per share. 

 

The spike in the Vadilal Industries share price followed development that the Gandhi family had reached a settlement to resolve internal disputes and restructure the company’s management. The move is aimed to strengthen corporate governance, professionalise leadership, and ensure the long-term ownership of the iconic ‘Vadilal’ brand.

 

As part of the restructuring process, Vadilal Industries will transition to independent professional management, promoting greater transparency and operational efficiency. The company will also secure full ownership of the Vadilal brand, which has previously been licensed on a non-exclusive basis. 

 

To streamline its operations, Vadilal Industries plans to merge promoter-owned entities, such as Vadilal Finance Company Pvt. Ltd., Veronica Constructions Pvt. Ltd., and Vadilal International Pvt. Ltd., into Vadilal Industries.

 

In addition to operational changes, there have been major changes to the company's board. Key resignations include Kalpit R Gandhi stepping down as the chief financial officer (CFO) and as a non-executive, non-independent director. 

 

Rajesh R Gandhi and Devanshu L Gandhi have also resigned from their roles as managing directors, while Deval D Gandhi has stepped down as a non-executive, non-independent director. These changes are part of the company's effort to align with its new direction.

 

The company has also approved amendments to its Articles of Association and made revisions to policies regarding dividend distribution and the appointment of independent directors. Under the new agreement, each of the three branches of the Gandhi family will have the right to appoint one director to the board. However, the majority of the board will be composed of directors who are not members of the family or their nominees. The board will include four non-executive directors, at least three of whom will be independent.

 

The restructuring plan is still subject to shareholder approval and regulatory clearances from Sebi, NCLT, and stock exchanges. 

 

About Vadilal Industries 

 

Vadilal Industries is a leading manufacturer of ice cream, flavoured milk, frozen desserts, processed foods, and other dairy products.

 

The market capitalisation of Vadilal Industries is Rs 3,761.18 crore, according to BSE. The company falls under the BSE SmallCap index. 

 

At 3:02 PM, Vadilal Industries share price was trading 13.89 per cent higher at Rs 5,232.70. In comparison, BSE Sensex was trading 1.76 per cent higher at 76,052.40 levels.