Kwality Wall’s targets distribution expansion, double-digit volume growth after listing

Kwality Wall’s India plans to focus on distribution expansion, supply chain investment, and volume growth after listing as an independent entity following its demerger from Hindustan Unilever, according to Chitrank Goel, Deputy MD of Kwality Wall’s.Goel said the company is focused on building long-term shareholder value through growth in packaged ice cream consumption and distribution reach. He added that the company is targeting consistent volume growth as scale increases across markets.

Ice cream is a capital-intensive category and will require continued investment in cold chain and storage infrastructure, he added.
Also Read | SoftBank realises $7.4 billion from India bets; Lenskart, Meesho IPO gains lift portfolio to $13.7 billionPrashant Premrajka, CFO, Kwality Wall’s said, “Ice cream is a very high capex business… land grab is the opportunity… versus 13 million FMCG outlets, ice cream is present in about 1 million, and we are present in about 200,000.”

He added that the investment will focus on cabinet expansion and supply chain capacity.

Premrajka said the current earnings before interest, taxes, depreciation, and amortisation (EBITDA) margins reflect past investment in supply chain infrastructure. He expects margin improvement over time through operational scale and cost initiatives.

Premrajka said, “We have identified key margin improvement pillars that will play out in the medium term. So, we believe in the long-term value creation for the category.”

Goel said summer remains a key demand period but aims to build year-round consumption through distribution and product launches.Also Read | Aye Finance shares make quiet debut; list at par versus IPO price

Goel said, “Scale is something which will drive long-term shareholder value… how do we drive year-on-year double-digit volume growth, that’s what we are looking at.”

He said category growth and distribution expansion may support long-term business scale.

Premrajka said packaged ice cream remains under-penetrated compared to other fast-moving consumer goods (FMCG) categories, offering room for growth.

He added that Euromonitor International forecasts indicate double-digit category growth and said the company aims to grow faster than category growth over time.

The company made its stock market debut on February 16. The stock is listed at ₹29.80 per share on the NSE, compared to the last discovered price of ₹40.20. The listing implied a market capitalisation of ₹7,001.78 crore.

For the full interview, watch the accompanying video

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