Despite strong summer demand, Havmor ice cream must boost profit margins as input costs bite
“From a demand perspective, the summer is very strong, but we’re seeing a serious headwind on the bottom line. Cocoa prices have almost tripled compared to last year, and white butter and skim milk prices are also rising.” Mint. “For chocolate recombination like ours, this will have a significant impact.”
Havmor has expanded its footprint across India through three manufacturing plants (Anand and Vadsar in Gujarat) and a new plant in Pune. “We’re passing on a small portion of inflation to consumers. It’s a very sensitive category and we have a larger scale and backward integration for both cooperatives and multinational giants,” Anand said.
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The company recently launched “Crunch,” a new premium popsicle ice cream that uses Korean technology to layer jam, vanilla, chocolate and cookies. “This is the first product of its kind in India and is possible only due to the technology transfer from South Korea’s Rakuten. It’s not something any local player can easily copy,” Anand said.
This innovation is part of Havmor’s broader strategy to deliver differentiated products in the advanced field. The price is ₹60, while global competitors’ premium products cost almost ₹100. “So, it’s advanced, but it’s not,” Anand said.
Expand your footprint
Havmor steadily expands manufacturing capacity and distribution. Pune factory, involving investment ₹1 million, can be expanded up to 16 lines. The company also invested ₹Recently, the five elements have been added to the Anand factory. “Every year we invest ₹Only Rs 400-50 crore in capital expenditure and supply chain. ” Anand said.
In terms of distribution, Havmor is expected to reach nearly 90,000 stores by the end of 2025, up from about 60,000 two years ago. The brand is also focused on the development of the southern market, with Anand pointing to Chennai, and Hafmore now has about 40 clerks. “Franchisees will only open their living rooms when they see strong demand. We see loyal customers and high throughput in these markets,” he said.
Additionally, the company plans to continue to expand its franchise-led living room network, which currently includes 250 media, mainly operated by partners. Anand said the company has also entered new territory, including Jamu and Kashmir, Uttarakhand and Uttar Pradesh. “UP has the largest urban population in India. We are very excited about the size opportunity there.”
Rapid business drives growth
Anand said fast commerce is becoming one of Havmor’s fastest growing sales channels, although he refused to share specific data. “It is growing exponentially. The category benefits because consumers don’t have to heat up 45 degrees more to buy ice cream,” he said. However, he admits that the last mile delivery challenge continues, with some customers receiving partially melted products.
“I personally monitored fast business delivery on weekends, especially from our Anand location. We do share feedback with our delivery partners, but yes, there are gaps in last mile training and infrastructure,” he said.
Balance between tradition and novelty
Havmor focuses on maintaining regional flavor preferences while also introducing new products. The company has produced two versions of the popular buttercream ice cream, one of Gujarat, Maharashtra and Rajasthan, and another for North India and the South – a consumer-based taste test. “It’s a supply chain nightmare, but it’s necessary,” Anand said.
The company also uses Real Alphonso mangoes, such as the “Havmor Fairts” range, to produce seasonal products and plans new releases in the areas of features and “better”, including sugar-free options. Anand added: “Room has a strong global portfolio in this area and we hope to bring some of these formats to India in the future.”
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Currently, Havmor has about 150-160 stock units (SKUs), while Anand is pruned regularly based on performance.
Brand investment
Anand said Lott believes India is a strategic market and continues to invest in brands and infrastructure. In addition to the advertising, the company also signed cricketer Hardik Pandya and actor Tamannaah Bhatia as brand ambassadors, attracting audiences in Gujarat and southern India.
“Hadik’s transfer from Gujarat Titans to Mumbai Indians actually helped us because we are now gaining popularity in two major markets,” Anand said.
Looking ahead, Anand said the company will continue to focus on innovation and regional relevance while leading to inflationary pressures. “Ice cream is a category where people want something new every summer. It keeps us and consumers excited.”
