Heritage Foods Ltd. aims to boost its ice cream business revenue͏͏ to͏͏ INR͏͏ 700͏͏ crore͏͏ over͏͏ the͏͏ next͏͏ five͏͏ years,͏͏ according͏͏ to͏͏ CEO͏͏ Srideep M Kesavan.
New͏͏ Telangana͏͏ plant͏͏ to͏͏ boost͏͏ ice͏͏ cream͏͏ capacity:
Kesavan͏͏ stated͏͏ that͏͏ the͏͏ topline͏͏ growth͏͏ will͏͏ be͏͏ fueled͏͏ by͏͏ increased͏͏ capacity͏͏ from͏͏ the͏͏ company’s͏͏ newly͏͏ announced͏͏ plant͏͏ in͏͏ Telangana.
Heritage͏͏ Foods’͏͏ board͏͏ approved͏͏ a͏͏ proposal͏͏ on͏͏ Wednesday͏͏ to͏͏ establish͏͏ a͏͏ new͏͏ ice͏͏ cream͏͏ manufacturing͏͏ unit͏͏ in͏͏ Shamirpet,͏͏ Telangana.͏͏ The͏͏ facility,͏͏ with͏͏ a͏͏ capital͏͏ investment͏͏ of͏͏ INR͏͏ 204͏͏ crore,͏͏ will͏͏ be͏͏ funded͏͏ through͏͏ debt͏͏ and͏͏ internal͏͏ accruals,͏͏ the͏͏ company͏͏ revealed͏͏ in͏͏ an͏͏ exchange͏͏ filing.
Continue͏͏ Exploring:͏͏ Heritage Foods expands͏͏ into͏͏ West͏͏ Bengal,͏͏ eyes͏͏ Bihar͏͏ and͏͏ Jharkhand͏͏ next
“The͏͏ new͏͏ capacity͏͏ enables͏͏ us͏͏ to͏͏ expand͏͏ our͏͏ annual͏͏ ice͏͏ cream͏͏ business͏͏ revenue͏͏ from͏͏ around͏͏ INR͏͏ 110-120͏͏ crore͏͏ to͏͏ INR͏͏ 650-700͏͏ crore.͏͏ That’s͏͏ the͏͏ growth͏͏ potential͏͏ we͏͏ aim͏͏ to͏͏ unlock͏͏ over͏͏ the͏͏ next͏͏ three͏͏ to͏͏ five͏͏ years,”͏͏ said͏͏ Kesavan.
Ice͏͏ cream͏͏ contributed͏͏ INR͏͏ 31͏͏ crore͏͏ in͏͏ Q1:
Value-added͏͏ dairy͏͏ products͏͏ accounted͏͏ for͏͏ 38%͏͏ of͏͏ Heritage͏͏ Foods’͏͏ revenue͏͏ in͏͏ Q1,͏͏ with͏͏ the͏͏ ice͏͏ cream͏͏ business͏͏ contributing͏͏ 10%,͏͏ or͏͏ INR͏͏ 31͏͏ crore,͏͏ Kesavan͏͏ added.
Huge͏͏ potential͏͏ in͏͏ India’s͏͏ ice͏͏ cream͏͏ retail͏͏ market:
Kesavan͏͏ highlighted͏͏ the͏͏ significant͏͏ growth͏͏ potential͏͏ of͏͏ the͏͏ ice͏͏ cream͏͏ business͏͏ in͏͏ the͏͏ Indian͏͏ market.
“We͏͏ have͏͏ just͏͏ begun͏͏ to͏͏ tap͏͏ into͏͏ the͏͏ ice͏͏ cream͏͏ market.͏͏ In͏͏ a͏͏ country͏͏ with͏͏ impulsive͏͏ retail͏͏ penetration͏͏ of͏͏ about͏͏ 3.5͏͏ to͏͏ 4͏͏ million͏͏ outlets,͏͏ ice͏͏ cream͏͏ is͏͏ available͏͏ in͏͏ only͏͏ 3.4͏͏ to͏͏ 4͏͏ lakh͏͏ locations.͏͏ This͏͏ means͏͏ that͏͏ barely͏͏ 10%͏͏ of͏͏ the͏͏ retail͏͏ impulse͏͏ purchase͏͏ space͏͏ has͏͏ been͏͏ captured͏͏ by͏͏ ice͏͏ cream.͏͏ The͏͏ growth͏͏ potential͏͏ is͏͏ enormous,”͏͏ the͏͏ top͏͏ executive͏͏ stated.
New͏͏ plant͏͏ expected͏͏ to͏͏ start͏͏ by͏͏ Q3͏͏ 2025:
Heritage͏͏ Foods͏͏ anticipates͏͏ that͏͏ the͏͏ plant͏͏ will͏͏ be͏͏ operational͏͏ by͏͏ the͏͏ third͏͏ quarter͏͏ of͏͏ 2025.
“We͏͏ expect͏͏ the͏͏ new͏͏ line͏͏ to͏͏ be͏͏ operational͏͏ by͏͏ August͏͏ or͏͏ November͏͏ 2025.͏͏ We͏͏ anticipate͏͏ that͏͏ the͏͏ capacity͏͏ will͏͏ be͏͏ fully͏͏ utilised͏͏ within͏͏ the͏͏ next͏͏ four͏͏ to͏͏ five͏͏ years,”͏͏ Kesavan͏͏ said.
The͏͏ company͏͏ plans͏͏ to͏͏ complete͏͏ a͏͏ significant͏͏ portion͏͏ of͏͏ the͏͏ investment͏͏ in͏͏ the͏͏ Telangana͏͏ plant͏͏ by͏͏ October͏͏ next͏͏ year.
“We͏͏ will͏͏ be͏͏ introducing͏͏ additional͏͏ capabilities͏͏ in͏͏ the͏͏ coming͏͏ years,͏͏ enabling͏͏ us͏͏ to͏͏ manufacture͏͏ several͏͏ new͏͏ products͏͏ and͏͏ innovations͏͏ that͏͏ our͏͏ current͏͏ line͏͏ cannot͏͏ accommodate,”͏͏ Kesavan͏͏ concluded.
Founded͏͏ by͏͏ Andhra͏͏ Pradesh͏͏ Chief͏͏ Minister͏͏ N.͏͏ Chandrababu͏͏ Naidu͏͏ in͏͏ 1992,͏͏ Heritage͏͏ Foods͏͏ has͏͏ established͏͏ a͏͏ robust͏͏ presence͏͏ in͏͏ the͏͏ retail͏͏ market͏͏ across͏͏ the͏͏ southern͏͏ states.
