Dairy Day Targets ₹1,000-Crore Revenue Through Regional Expansion
Dairy Day Ice Creams, a Bengaluru-based company, is aiming to achieve a revenue target of ₹1,000 crore by the fiscal year 2026, increasing from ₹820 crore in FY25. The company derives a significant portion of its revenue, approximately 68%, from the states of Karnataka and Tamil Nadu. Other important markets include Andhra Pradesh, Telangana, and Maharashtra, which together contribute around 30% to the business.
The company plans to deepen its market presence in these regions, with a strong emphasis on enhancing distribution and network strength. As part of its expansion strategy, Dairy Day intends to double its current retail network of 80,000 outlets and over 500 distributors within the next three years. This growth is supported by significant investment from Kedaara Capital, which acquired a major stake in March 2024.
The company's approach includes not only strengthening its existing market base but also tapping into emerging markets, which are projected to grow 1.5 to 2 times faster than the more mature markets. Quick commerce and modern trade currently contribute 6-7% and 10-12% of the company's revenue, respectively, while general trade remains the primary revenue source.
According to Saurabh Kasat, Director & CFO of Dairy Day Ice Creams, the company has been experiencing a compound annual growth rate of nearly 25% in its operating regions. Arvind Ramachandran, Vice President of Marketing, emphasized the aim to be the leading organized ice cream brand in these areas, particularly in less urbanized markets.
Motilal Oswal Private Equity, a previous investor, exited its stake following Kedaara Capital's acquisition. Despite the expansion plans, Dairy Day does not intend to seek additional capital as it is well-positioned for growth.
