PallaviDarade, Commissioner, FDA, Govt of Maharashtra, at the CII (Confederation of Indian Industry) Ice Cream Industry Conclave, which took place recently said that Food and Drug Administration (FDA) is keeping a close vigilance on the online food. The subject of the conclave was Future of the Ice Cream Industry – Dynamics, Technology, Innovations and Scope for Growth.
Daradesaid that the ice cream industry, which is estimated to be worth Rs. 15,000 crore is coming of age and it is high time to deliberate on the dynamics, technology and scope for growth by the industry.
Favourable government policies and a conducive business environment are the need of the hour for the sector to continue to grow at 15-20 per cent.
Devanshu Gandhi, Chairman, CII Regional Task Force on Agriculture and Food, and managing director, Vadilal Industries Ltd, stated that despite the large population base, the Indian per capita consumption of ice cream was considered to one of the lowest, at just 400ml.
“Compare this with China at 3,000ml and the United States at 22,000ml. However, with several favourable factors like affordability, increase in disposable incomes and the booming middle class, this could soon change. There is a need to increase the awareness of this sector. “The total advertising spends across various platforms is to the tune of Rs. 60,000 crore, out of which the share of the FMCG sector is almost 30 per cent. However, the ice cream industry spends less than Rs. 200 crore on advertising for its products,” Gandhi stated.
“The ice cream is not considered in the same basket as the other dairy products like cheese and butter. The ice cream industry is taxed higher. We have to pay GST at 18 per cent, while other dairy products are taxed at 12 per cent,” he added.
B.Thiagarajan said, “In western countries, it is generally pastries and ice cream for desserts and we have over 100 varieties of traditional sweets. The mindset is fast changing. We expect some major change to take place in the sector in the next 3-4 years. That is the reasons a lot of players are consolidating their position todayandMNCs have taken steps to set up dedicated outlets here”.
Employing 15 lakh people and ice cream industry is considered one of the largest employers in the dairy and food processing industry.