Ice cream maker Vadilal Industries plans to raise prices by 5-7% in December or January to offset a rise in cost of raw materials like milk. Managing Director Rajesh Gandhi told moneycontrol.com that the price hikes had become "inevitable." The company had last raised prices in February and April.
Despite the price hikes, Vadilal has seen strong sales growth and is expecting 20-25% growth in ice creams this fiscal. Apart from ice creams, Vadilal is also expanding its range of processed foods, Gandhi said.
The company has invested Rs 10 crore in the last one year in upgrading plants and machines to cater to the increasing demand for frozen foods. Exports account for 70% of Vadilal's processed foods, while the rest is sold in India.
Vadilal is expecting 25-30% growth in processed food sales this year, and hopes the segment will see a cash breakeven by March.
Click on the audio icon to listen to Rajesh Gandhi's full interview with moneycontrol.com's Nachiket Kelkar.
