The consumer goods major Hindustan Unilever Ltd. has reportedly announced that it is entering into an agreement with Vijaykant Dairy and Food Products Ltd. (VDFPL) and its group company. HUL, s per sources, is planning to acquire its ice-cream and frozen desserts business, including Adityaa Milk, and its front-end distribution network across the country.
The potential acquisition aligns with HUL’s strategy to strengthen its place in the rapidly growing ice cream and frozen dessert market in India, state credible sources. In a statement, the company said that the parties will work together to make this happen. Until the transaction is complete VDFPL will head the business and will continue to manufacture for HUL for a defined duration.
Sanjiv Mehta, CMD of HUL told sources that the company sees great potential for growth in the frozen desserts and ice-cream business. Therefore, the acquisition will be a great addition to HUL’s existing Kwality Wall’s range of products.
According to the Livemint, the India ice-cream market is estimated to grow from to ₹ 6,198 crores in 2019, from ₹ 4,160 crore, its valuation in 2014. So far, Amul is the largest selling brand with an estimation of 32% overall market shares.
For the record, Adityaa Milk, a flagship business of VDFPL was incorporated in September 2004. It has a foothold in dairy and dairy-based products and has successfully diversified into ice creams and frozen desserts segment. Although the brand originated in Karnataka, it has gradually expanded to Maharashtra, Kerala, and Goa.
For the uninitiated, Hindustan Unilever Limited is India’s largest FMCG company with a heritage of more than 80 years in India. This is not the first time it is acquiring an ice-cream brand. HUL’s entry in the ice-cream segment dates back to 1994 when it acquired Kwality Wall’s, cite trusted sources.