Vadilal Industries’ U.S. subsidiary is set to begin local ice cream production by year-end, a strategic move aimed at reducing dependence on imports from India and mitigating the impact of recently imposed U.S. tariffs. The initiative is expected to bolster sales, protect market share, and streamline the supply chain.
The Bristol-based unit, established in 2009, distributes Vadilal products nationwide and accounts for roughly a third of the parent company’s turnover. Currently, the majority of its ice cream is imported from India, exposing the business to tariffs of up to 50% recently imposed by the U.S. government.
“Scaling our manufacturing in America will give us a significant advantage in terms of saving on tariffs and overall supply chain impacts from India,” said Shreshth Jhawar, CEO of Vadilal Industries USA. The facility is slated to start partial operations by December, with full-scale ice cream production expected by April 2026.
The parent company, based in Ahmedabad, posted revenue of ₹10.11 billion ($114.55 million) for the year ending March 31. While Jhawar did not disclose the investment in the U.S. facility, he confirmed plans to use it for future exports.
In anticipation of the tariff challenges, Vadilal USA had advanced several shipments earlier this year and is targeting a 20% revenue growth in the current financial year. “We have to do everything to keep protecting market share,” Jhawar said, noting that the U.S. unit will absorb part of the cost impact.