The Magnum Ice Cream Company is ramping up its India strategy with plans to expand its manufacturing footprint from one to four factories, aiming to capitalize on the country’s rapidly growing appetite for ice cream.
The announcement was made by CEO Peter ter Kulve during an investor call, where he highlighted the need for supply chain scale-up to support strong demand growth. “With our current growth rates, one factory is no longer sufficient—we need four,” he said.
Dairy Pivot and Pricing Reset Drive Demand
The expansion follows a major overhaul of the company’s India portfolio, shifting from vegetable fat-based frozen desserts to dairy-led ice creams, in line with evolving consumer preferences. The company has also recalibrated pricing to make its offerings more competitive within India’s broader snacking ecosystem.
This strategic reset appears to be paying off. The company reported over 50% growth in Magnum sales in India, driven by rising demand for premium formats and improved product quality.
Cold Chain Investments Weigh on Margins
Despite strong volume growth, profitability remains under pressure as the company invests heavily in backend infrastructure. India’s underdeveloped cold-chain ecosystem has required significant capital deployment, particularly in freezer cabinets and distribution.
Ter Kulve noted that the company has installed nearly 50,000 ice cream cabinets across the country within a short span, adopting a distribution model inspired by markets like Turkey. These investments, while impacting margins in the near term, are expected to support long-term scalability.
India Emerges as Strategic Growth Market
India, already the world’s largest dairy market, is increasingly being seen as a future powerhouse for ice cream consumption, driven by rising incomes, urbanization, and premiumization trends. The domestic ice cream market is currently estimated at around $5 billion, led by players such as Amul.
To strengthen its local presence, the company recently acquired a 61.9% stake in Kwality Wall’s (India) Limited, which continues to operate as a subsidiary. A mandatory open offer to public shareholders is currently underway and could further increase its stake, subject to regulatory requirements on minimum public shareholding.
Long-Term Bet on Scale and Premiumization
The India push comes after Unilever spun off its ice cream division to enable faster, market-specific decision-making. The newly independent structure is enabling the business to invest aggressively in high-growth markets such as India.
While short-term profitability remains a challenge, the company expects returns to improve as factory utilization rises and premium products gain share.
With expanded manufacturing, deeper cold-chain penetration, and a sharpened focus on dairy and premium offerings, the Magnum Ice Cream Company is positioning India at the centre of its global growth strategy.