Ice cream makers are witnessing tepid sales this summer too as most markets are under Covid-induced lockdown. Amul India’s MD R Sodhi says sales have come down to 30%-50% in this year. The company has cut production by 60%.
Ice cream manufacturers say they have not revised their pricing despite increased input costs. Logistics costs have also risen 20%, while packaging costs are up 40%.
“This year we were seeing some improvement in sales from states like Maharashtra. However, we are losing sales in states like Uttar Pradesh currently,” Sodhi added.
Hatsun Agro Product — which owns Arun Ice Cream — also saw sales drop to 30%-40%, due to the lockdown imposed in April. Its managing director RG Chandramogan said the normal summer season sales were wiped off in the last two years. However, we expect to do 30% sales better than April and May 2020 due to low base effect. We are not running in production full capacity. We are also absorbing the cost like an increase in packaging cost of 15%. On the other hand, online selling FMCG startups like Habbit Health and Nutrition which sells in Delhi NCR, say sales have increased three times. Its CEO Dhruv Bhushan says demand for our nutritious ice cream category has increased from Rs 6 lakh in March, 2021 to Rs 17 lakh in April, 2021. “Customers are going for the ‘nutrition’ quotient and are gifting our products to friends and family during the lockdown. We are seeing the same growth trend in May too.”