Vadilal is Like Wine, Adding Value Through the Ages

🔍Insights

Nadeesh Kareemdathil, Apoorva Bajj

Dec 11, 2023 — 4 min read

Vadilal: Past, Present, Future

Since its modest inception as a street soda shop in 1907, Vadilal, the renowned ice cream brand, has evolved into a household name, embodying the quintessence of frozen delight. The trajectory of Vadilal's triumph isn't merely a chronicle of frozen confections; it's a narrative of foresight, ingenuity, and generations of unwavering commitment. The challenge for the succeeding generation has been to strike a harmonious balance, adhering to core values while implementing crucial changes to enhance their business's value.

"The next generation's role is that of renewal and being the voice of the new generation, addressing modern customers and competition. We trust they grasp the legacy as family members but can act as catalysts for change to ensure the continued success of family enterprises," remarks Rajan Vasa, office managing partner, Gujarat, KPMG in India.

Founding the Legacy
Continuing Through Generations
Passing the Baton
Innovations and Achievements
The Current Scenario

Founding the Legacy

In 1907, Vadilal Gandhi, a forward-thinking resident of Ahmedabad, initiated the foundation for this remarkable legacy. His humble enterprise began with the sale of soda, a refreshing beverage that resonated with the local community. Subsequently, Vadilal Gandhi introduced an additional delight – handcrafted ice cream, captivating crowds eager to relish his exquisite creations.

Continuing Through Generations

The stewardship of this thriving business passed to Vadilal Gandhi's son, Ranchod Lal Gandhi, who assumed the responsibility of nurturing and expanding the legacy. In 1926, under Ranchod Lal Gandhi's guidance, the inaugural retail outlet, aptly named Vadilal Soda Fountain, was unveiled in Ahmedabad. This marked a crucial moment as the focus shifted towards ice creams.

Demonstrating an unwavering commitment to quality and innovation, Ranchod Lal Gandhi introduced an imported ice cream-making machine from Germany that same year. This strategic decision enhanced the taste and paved the way for expansion. By the time India gained independence, Vadilal had established four outlets across the city, laying a solid foundation for future growth.

Passing the Baton

As time progressed, the baton transitioned to the next generation – Ramchandra and Laxman Gandhi, the sons of Ranchod Lal Gandhi. Their entry into the business in the early '70s marked a period of rapid expansion, consolidating Vadilal's presence in Gujarat with a network of 10 outlets.

With the advent of the 1990s, the fourth generation of the Gandhi family entered the scene, infusing new ideas and perspectives. Ramchandra Gandhi's three sons – Virendra, Rajesh, and Shailesh – and Laxman Gandhi's son Devanshu, embraced their heritage, propelling Vadilal towards greater horizons.

Innovations and Achievements

Noteworthy accomplishments have marked Vadilal's path. In November 2001, the brand achieved recognition in the Limca Book of Records for crafting 'The Largest Ice Cream Sundae.' This monumental feat was the result of collaborative efforts from 180 individuals who assembled 4,950 liters of ice cream, 125 kg of dried fruits, 255 kg of fresh fruits, and 390 liters of assorted sauces within a record-setting 60 minutes.

The Current Scenario

Kalpit Gandhi, a fifth-generation member of the Vadilal family, presently serves as the Chief Financial Officer (CFO) of the company. Vadilal has transcended international borders, emerging as the largest-selling Indian ice cream brand in the United States. "Working with the family business has always been my dream," says Aakanksha Gandhi, the fourth generation to join the family business, holding the position of president-branding and parlors at Vadilal Enterprises.

The new generation is actively introducing more innovation while steadfastly preserving the family's core values. Vadilal operates through two distinct entities: Vadilal Industries, responsible for manufacturing, and Vadilal Enterprises, overseeing marketing and distribution. Aakanksha, daughter of Devanshu, joined the business in 2018, taking charge of nationwide marketing and branding efforts.

"Since becoming part of the brand, my primary objective has been to ensure continuous relevance among the Gen Z and Gen Alpha demographics," she asserts. At 26 years old, she has been at the forefront of initiatives to elevate Vadilal's presence in the eCommerce domain, collaborating with influencers, all the while maintaining a delicate balance with the company's core values.

A year ago, Aakanksha took the lead in launching Vadilal Now For Ever, a dessert café strategically designed to connect with the younger generation and cultivate lasting loyalty. Even the standalone ice cream parlors, Vadilal Scoop Shops, have expanded to 30 locations across Gujarat and four locations in Delhi. Vadilal is preparing for an upcoming franchise-based, pan-India launch. In the fiscal year 2023, the manufacturing business reported a net revenue of Rs 896 crore, and the marketing and distribution business achieved a net revenue of Rs 930 crore.

With a heightened focus on innovation in marketing and branding, Aakanksha is poised to transform Vadilal. However, she emphasizes maintaining the essence of the corporate culture established over the years. "We are encouraging a more democratic style of leadership, allowing more opportunities to engage with team members and value their insights," she affirms.