Vadilal resets after 10 years & amid a family battle

Ice cream and frozen dessert manufacturer Vadilal Industries Ltd (VIL) has entered into a revised 12-month supply agreement with its estranged group entity, Vadilal Enterprises (VEL), for marketing and distribution. The agreement, effective from November 1, 2026, to October 31, 2027, replaces Vadilal's previous 10-year pact with VEL, which expired on September 30, 2026. The renewal was halted by VEL's failure to secure approval from its public shareholders for the renewal proposal.

VIL's standalone net profit for the fiscal year ended March 31, 2026, was reported at Rs 98.01 crore, a decline from Rs 113.88 crore in the previous fiscal year. The company's revenue from operations stood at Rs 1,109.54 crore for the same period.

In a move amid a longstanding family dispute within the Gandhi promoter family, Vadilal appointed Himanshu Kanwar as its first non-family CEO last month. This appointment followed a restructuring that aimed to merge three promoter-held entities — Vadilal International Pvt Ltd (VIPL), Vadilal Finance Company Pvt Ltd (VFCPL), and Veronica Constructions Pvt Ltd (VCPL) — under Vadilal Industries. Concurrently, Rajesh R. Gandhi and Devanshu L. Gandhi stepped down as managing directors after resolving the family litigation.

The Vadilal brand is expected to be brought under the direct ownership of the promoters, which is anticipated to streamline issues like royalty payments and enhance operational efficiency. The feud between the Mumbai and Ahmedabad branches of the Gandhi family over brand rights and regional sales territories for the Vadilal ice cream business has been ongoing in the Bombay High Court.

According to a report by IMARC, the India ice cream market is projected to reach Rs 57,500 crore by 2033, expanding at a compound annual growth rate (CAGR) of nearly 11% between 2025 and 2033.