By Praveen Paramasivam
(Reuters) -The U.S. subsidiary of India’s Vadilal Industries will start manufacturing ice cream at its local facility by the year-end to reduce dependence on imports and boost sales, an executive of the unit said on Friday.
Vadilal Industries USA currently imports a majority of its products from India.
U.S. President Donald Trump last month imposed tariffs of up to 50% on Indian goods, sending exporters of everything from apparel to frozen shrimp into a frenzy and forcing them to work out contingency plans.
Corporates globally from Johnson & Johnson and Adidas to Sony have flagged a financial knock worth billions of dollars due in part to the tariffs on countries.
The Bristol, Pennsylvania-based subsidiary, set up in 2009, distributes its products to stores across the country and accounts for roughly a third of Vadilal Industries’ turnover.
“(Scaling) our manufacturing in America will give us a significant advantage in terms of saving on the tariff and overall supply chain impacts from India,” Vadilal Industries USA CEO Shreshth Jhawar told Reuters in an interview.
Jhawar said the U.S. plant is expected to begin operations by December with full-fledged ice cream manufacturing commencing by April.
The Ahmedabad, Gujarat-based parent company posted revenue from operations of 10.11 billion rupees ($114.55 million) for the year ended March 31.
Jhawar did not disclose the investment size in the facility, which Vadilal Industries USA aims to use for future exports.
The subsidiary, which brought forward its shipments several months ago in anticipation of tariff challenges, is on track to meet revenue growth of 20% in the ongoing financial year, he said.
“We have to do everything to keep protecting (market share),” Jhawar said, adding the U.S. unit will absorb some of the cost impact.
($1 = 88.2590 Indian rupees)
(Reporting by Praveen Paramasivam in Chennai; Editing by Harikrishnan Nair)
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