Mumbai: The Magnum Ice Cream Company is undertaking a major transformation of its India business, positioning dairy ice cream at the centre of its long-term growth strategy as consumer preferences increasingly shift toward milk-based frozen products.
Peter ter Kulve, Global CEO of the Magnum Ice Cream Company, said India has emerged as one of the company’s most strategically important markets following the spin-off of Unilever’s global ice cream business. The company is now aggressively reshaping Kwality Wall’s portfolio by replacing frozen desserts made with vegetable fats such as palm oil with dairy-based ice cream offerings.
The move reflects broader trends in the Indian dairy industry, where consumers are becoming more quality-conscious and increasingly associate dairy ingredients with better nutrition, premium quality and authentic taste.
“The company took a principled decision to become a full dairy business even without a formal business case. About half of the portfolio will be dairy-based this year, with most of the transition completed next year,” Ter Kulve said during an interview.
He emphasised that the company’s global identity has always been rooted in ice cream rather than frozen desserts, adding that India required a complete strategic reset across manufacturing, distribution, pricing and product development.
Massive Investment in Cold Chain Infrastructure
As part of its India expansion strategy, the company plans to scale up cold-chain infrastructure and local manufacturing capabilities significantly. Magnum aims to deploy nearly one million cold cabinets across India in the coming years to improve product accessibility and strengthen last-mile distribution.
Industry experts believe the expansion of cold-chain networks will play a critical role in driving dairy market growth and increasing penetration in semi-urban and rural markets where frozen dairy consumption remains relatively low.
Currently, Kwality Wall’s operates a major manufacturing facility in Nashik, Maharashtra. However, ter Kulve acknowledged that relying on a single production hub has limited operational efficiency and product availability nationwide.
“We should have built eight factories. There is no way you can have good cost, quality and service when Cornetto needs to come out of Nashik for the whole country,” he said.
The company is now evaluating a broader regional manufacturing strategy to improve supply chain efficiency and compete more effectively with fast-growing regional dairy brands.
Price Corrections and Local Flavours
In addition to infrastructure investments, Kwality Wall’s is recalibrating its pricing strategy to improve affordability in the highly competitive Indian ice cream market. The company has reduced prices by up to 30 per cent in select categories while also introducing localised flavours tailored to Indian tastes.
Traditional flavour profiles such as kulfi and kesar bhog are being integrated into the portfolio as part of the company’s localisation strategy. Analysts say this approach mirrors successful expansion models used in India’s packaged food and beverage sectors.
India’s ice cream market is estimated at nearly $2 billion and continues to grow at a double-digit rate. Despite low annual per capita consumption of approximately 0.6 litres, the category is expanding at nearly 11 per cent annually, creating significant opportunities for organised dairy players.
Competing with Amul and Regional Dairy Brands
The renewed focus on India comes at a time when competition in the dairy ice cream segment is intensifying. Regional brands and dairy cooperatives have steadily gained market share over the past two decades through stronger local sourcing, pricing efficiency and extensive distribution networks.
Ter Kulve openly acknowledged the strength of the Gujarat Cooperative Milk Marketing Federation (GCMMF) and its flagship brand, Amul, in the dairy ice cream category.
“Amul has very good dairy ice cream, which they do for a good price,” he said, highlighting the cooperative’s sourcing ecosystem and nationwide dairy supply chain.
The executive also pointed to the growing influence of regional dairy companies and private equity-backed brands that have successfully adapted products and pricing for local markets.
India Positioned as Future Growth Engine
The Magnum Ice Cream Company currently generates around $200 million in business from India, but leadership believes the country could eventually become its largest market globally.
The company recently strengthened its India operations by acquiring a 61.9 per cent stake in Kwality Wall’s, which continues to operate as a listed subsidiary under the Magnum group.
Industry observers say the shift toward dairy-based products aligns with broader trends in India’s dairy sector, where consumers are increasingly favouring premium and value-added dairy products over low-cost alternatives.
With investments in dairy sourcing, manufacturing expansion, cold-chain development and local product innovation, the company is betting heavily on India’s evolving milk and frozen dessert landscape to drive its next phase of global growth.
