Indian dairy company Heritage Foods has inaugurated a new ice cream manufacturing facility at Shamirpet, marking a major step in expanding its value-added dairy business.
Plant Capacity and Investment Strategy
The new plant has a production capacity of 24 million litres of ice cream per year.
It is part of the company’s long-term strategy to strengthen its value-added dairy product portfolio, especially in the fast-growing premium ice cream segment.
Currently, Heritage Foods’ ice cream business generates about ₹100 crore in annual revenue. With the new facility, the company aims to expand production capacity up to five times over the next 7–8 years.
Company Leadership Statement
Vice-Chairperson and Managing Director N. Bhuvaneswari described the plant inauguration as a key milestone in the company’s growth journey.
Read More: Dairy Crisis in Thailand as Daily Milk Surplus Exceeds 200 Tonnes
According to her, the facility will help the company:
- Scale up ice cream production
- Launch innovative product varieties
- Strengthen its presence in major markets
Focus on Value-Added Dairy Products
The company is increasingly focusing on high-margin value-added dairy categories, particularly:
- Ice creams
- Dairy desserts
These products typically provide higher profit margins compared with liquid milk.
Growth of the Ice Cream Market in India
The ice cream sector in India is expanding rapidly due to several factors:
- Rising disposable incomes
- Growing urban and semi-urban consumption
- Premiumisation trends in packaged foods
- Increasing demand for packaged dairy products
This market growth is encouraging dairy companies to invest in new processing plants and product innovation.
Industry insight:
For dairy companies, shifting toward value-added products like ice cream, cheese, yoghurt, and desserts is a common strategy because liquid milk has lower margins and higher price volatility.
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