With leading weather forecast agencies predicting an early and hotter-than-normal summer in India, the ice cream industry is preparing for a significant boost in sales. Hatsun Agro Product (HAP), a prominent dairy company and owner of the Arun Icecreams brand, expects to see a notable increase in both ice cream and curd sales during the upcoming season.
Traditionally, ice cream sales pick up around the Holi festival. However, this year, warmer temperatures arrived earlier in March, leading to an earlier rise in ice cream consumption. HAP Chairman RG Chandramogan anticipates a volume growth of around 15% in the next financial year, with margins expanding by approximately 150 basis points from the current 11.5%. This optimistic outlook is attributed to higher capacity utilization and stabilization in input prices.
Despite increasing competition in the dairy market, Chandramogan remains confident in HAP’s unique product offerings and technological advancements, particularly in the ice cream segment.
Interestingly, Indian consumers have distinct ice cream flavor preferences. Vanilla remains the top choice, followed closely by butterscotch and then chocolate. Surprisingly, strawberry, a popular flavor globally, does not feature in the top 10 list for India.
HAP’s market capitalization currently stands at around ₹23,137.98 crore, with its shares experiencing a nearly 25% gain in the past year. This positive trajectory, coupled with the anticipated surge in ice cream and curd sales, suggests a promising future for the company.
As temperatures rise, consumers can expect a refreshing and delicious variety of ice cream and curd options from Hatsun Agro, while investors may see this as an opportunity to consider the company’s potential for growth.
