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Vadilal enters processed foods and carves niche in frozen food segment

History
The busy corner of Teen Darwaja in Ahmedabad is still as vibrant as it was in 1907. The bright board of ‘Vadilal Soda Shop’ is the recent addition to the 106-year-old ice cream shop and the first indigenous one in Gujarat.

Vadilal Gandhi, an ambitious man started Vadilal Soda Shop in 1907, which was passed on to his son, Ranchod Lal. He single-handedly ran the show and started a retail outlet in 1926. Just one hand- cranked machine for ice creams eventually revolutionised the food & beverage industry on the whole.

Eventually, Ranchod Lal's sons, Ramchandra and Lakshman, inherited the business and were instrumental in giving a new direction to the company. The duo imparted a new vision to the venture and infused a spirit of calculated risk-taking into the company. As a result, by the 1970s, the company had already evolved into a modern corporate entity.

Today, over 100 years and three more generations later Vadilal has transformed itself into the second-largest ice cream maker and a leading processed foods player.

A landmark
When passion is the driving force behind a business, there is never an end to betterment. And this is evident when you look at the growth of Vadilal as a company. Even after 80 years of spreading happiness as the most-loved ice cream brand, the company was yearning to give another great impetus to the business. It wanted to take another leap, which supports the dreams of gaining an international stronghold as well as creating yet another blissful utility for the consumers.

Thus, the company took up something more challenging, contemporary and diversified. And the result was the launch of Vadilal’s processed food division – Vadilal Quick Treat.

The concept was simple. Spread more and more happiness across the world! And what can bring more happiness to NRGs and NRIs than savouring authentic Indian foods at their doorsteps.

Making this logic the foundation stone, Vadilal set towards venturing in to an unexplored field of processed and frozen foods. It started with frozen fruits, vegetables & fruit pulps and went on to offer ready-to-eat and ready-to-serve foods.

The journey of Quick Treat began with 12 Stock Keeping Units (SKUs) and exports to seven countries, which are now 100+ SKUs and exports to over 45 countries.

With Quick Treat, an even robust approach was undertaken within which the group assembled the best and latest technologies, refined R&D facilities and exceptional workforce. Moreover, a forward-looking management created a worldwide brand that delivers freshness, sealed with trust. With a seemingly endless array of distinctive range of products, Quick Treat has something for everyone and for every occasion. Today, Quick Treat is exported to more than 100 importers and distributors across USA, Australia, Europe, the UAE and Africa.

Product Basket
After more than two decades, Vadilal Quick Treat has amazing delicacies for instant happiness which makes it synonymous to phrase ‘shortcut to happiness’ for its customers. Decades of experience in product sourcing, logistics, consumer understanding and expertise in the field of taste, product formulations and consistency in production cumulated into Vadilal Quick Treat products being accepted in India and abroad.

Just adding one more business was not the objective. Vadilal left no stone unturned to achieve highest standards of quality along with quantity. Giving equal importance to maintaining quality standards and cost-effectiveness, it was able to achieve not only a diverse product portfolio but also recognition as one of the pioneers in exports of Indian frozen food products.

With the amplification of needs coupled with wide acceptance of ethnic products, Vadilal has carved niche in the frozen foods industry. Interestingly, some of the Indian vegetarian products have made inroads in the mainstream consumption as well.

Vadilal Quick Treat offers products in almost all the segments of frozen foods. It ranges from Indian traditional meals, delightful Indian breads and snacks to mouth-watering Indian curries. And the list does not end here. It also has for the consumer, an extensive range of ‘Individually Quick Frozen’ vegetables and fruits.

Today the brand boosts of having one of the most extensive product portfolio spanning across five major food categories: Snacks; Indian Breads; Curries; Indian Vegetables; and Fruits.

Each of these categories offers a wide range of products to choose from. For example, Indian Breads have offerings like parathas, naans, kulchas and rotis; and Snacks like samosas, spring rolls, Gujarati delicacies, harabhara kebab and so on. There are more than 20 curries and rice products in the Curries category.

Vadilal Quick Treat offers an extensive range of frozen vegetables some of which are consumed across the world by NRIs as well as mainstream consumers. The product list includes vegetables such as green peas, sweet corn, mixed vegetables, okra, pigeon peas, lima beans, french beans, surati papdi lilva, bitter gourd, chillies, and so on.

Technology
Keeping pace with the changing times, the company expanded its operations supported by indepth knowledge of export markets and its dynamics. In a short span of time, added Vadilal Quick Treat Processed Foods to its existing domain of Vadilal ice cream.

Not only does Vadilal Quick Treat have one of the best production infrastructures in the country, it also excels in application of cutting edge innovations in the food industry. Each and every process is meticulously designed and impeccably implemented to deliver nothing but the best. From sourcing raw materials to their conversion into finished products, everything is done as per the international norms (HACCP - Hazard Analysis and Critical Control Points) of quality & safety. The company is recognised as a Star Export House by the Director General of Foreign Trade, a department working under the ministry of commerce, Government of India.

As a company, employing modern production technology and striving to adhere to the international standards of quality has been a top priority. This approach nourished the basic objective of becoming a global leader in ethnic Indian foods.

Vadilal Quick Treat uses a distinctive and highly advanced Individual Quick Freezing (IQF) technology to process its frozen foods. IQF is a freezing method of choice for seasonal products such as fruits and vegetables. This technology is developed as a specific solution to block or cluster-freezing of small-sized products, to preserve quality and to give unparalleled convenience to end-users. What makes Quick Freezing unique is that it is the only process in which virtually all the properties of most of the parent food stuff can be preserved. After IQF, grading and colour sorting takes place. The colour sorter process sorts the fruits and vegetables according to the proper colour and size of vegetables and fruits, so that only the finest ones can be used.

The packaging process includes metal detector machinery, which helps to detect any metal & prevent in packaging. This ensures superlative packaging for the wide range of exceptional delicacies. Vadilal Quick Treat also applies the ultra-modern ‘Flow Wrap’ technique for packaging food products. This unique, effective and totally automatic technique ensures perfect packaging for all categories of Quick Treat products. For packaging of vegetables in pouches, a special FFS machine is used to deliver excellent standards. The final packaging of products happens with an automated pallet wrapping machine.

To guarantee superlative quality of the frozen food products, the company maintains a large inventory management staff and huge capacity for cold storage with temperatures as less as minus 22 degrees. All of this leads to a world-class range of high-quality products in the offing.

The production capacities of the Dharampur plant at Valsad, Gujarat, are nothing less than impressive. While the frozen storage capacity is 3,500 MT, the canning capacity is 80 MT / Day. The freezing capacity touches 80 MT / Day, while the production capacity of ready-to-serve Indian breads, curries, snacks is over 6 MT / Day.

Recognitions
Vadilal endeavours to provide quality products that are endorsed by ISO 22000:2005 and HACCP certifications. The company has also been awarded the certificate of merit for excellence in export performance by APEDA (Agricultural & Processed Foods Export Development Authority of India). Vadilal has received two-star trading status from the Government of India. Vadilal is also a British Retail Consortium (BRC) certified and has the US FDA approval for its processed foods business.

World Scenario
The global frozen food scenario has showcased a positive outlook over the years. As per holistic statistics, the global frozen food market is expected to be $261.50 billion in 2015. USA is expected to witness a moderate CAGR of 4% from 2010 to 2015 while the Rest of the World (RoW) segment (which includes Latin America, Australia and others) is expected to witness a CAGR of 4.7%.

The Asian frozen food market is expected to grow at an estimated CAGR of 3.4% from 2010 to 2015.

New product launches is one of the major trends followed aggressively by key industry participants, making innovation the key growth factor. Consumers all across the world show as much preference for branded products in frozen foods category as other consumer goods. And the industry is witnessing an emergence of strong brands in the category. The unorganised sector remains the biggest challenge for the organised sector of branded frozen food products.

The existence of private labels, especially in Europe where they constitute around 40% of the total frozen foods market, is the major factor restricting the growth of the market. Ready meals are the most expensive ones among the frozen food product categories and, thus, account for the largest market share of 40% in terms of revenue.

The Road Ahead
Vadilal Quick Treat has gradually achieved complete sync with global trends in the processed food industry. The drive to constantly innovate its product lines complements the company’s goals to be one of the leading names as Indian processed food players in the international markets. To accomplish this, efficient support services have been developed with simultaneous efforts put in expanding transportation and global distribution networks in all continents.

Vadilal Quick Treat currently exports to more than 45 countries like USA, Canada, the UK, Kuwait, the UAE, Singapore, New Zealand, and Australia. In the coming years, Vadilal anticipates acquisition of a bigger market share in competitive branded markets like of Australia and the UK and establishment of a stronger brand identity through a meticulous marketing mix including quality products, and robust chain of distribution to ensure product availability at competitive prices through effective brand promotion initiatives.

To back its plans for Quick Treat in the international market, the company has established fully operational warehouses in New Jersey and California which cater to the east and west coasts of USA respectively and contribute to strengthening the distribution network.

In the domestic market, Quick Treat has established its existence in new territories like Uttar Pradesh and Delhi, and is all set to make its products available in Madhya Pradesh as well. By appointing new distributors, Vadilal has extended its market reach with its strong supply chain network. Moreover, Vadilal is aggressively targeting Quick Treat to various big-format modern trade stores to showcase presence at every hyper, super markets and cash & carry stores.

Further to this, the company has now entered the HORECA (Hotel, Restaurant and Catering) sector with its IQF vegetables and ready meals which is yet another profitable segment to bank upon.

The future endeavours of Vadilal will be directed towards penetrating existing markets by building consumer brand preference in its major markets. Meanwhile, opening up newer markets with opportunities of rapid growth is going to be a parallel activity.

Quick Treat is now planning to double its processed food revenues to over Rs 100 crore in next three years owing to the growing demand for its large variety of frozen processed foods in domestic as well as export markets.

In the next five years, the company aspires to make Quick Treat one of the leading frozen foods brands of India in foreign as well as domestic markets.

(The writer is MD, Vadilal Industries)

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