Vadilal Industries strikes fresh deal with Vadilal Enterprises amid family dispute

New Delhi: Ice cream and frozen desserts maker Vadilal Industries Ltd (VIL) on Wednesday signed a revised supply agreement for a 12-month period with estranged group entity Vadilal Enterprises (VEL) for marketing and distribution, it said in an exchange filing.

The agreement will be effective from November 1, 2026, to October 31, 2027.

VIL had said in a filing on September 11 that its existing 10-year agreement with VEL would end on September 30, 2026. According to the statement, the agreement “could not be renewed from October 1 as VEL had not received the required approval from its public shareholders for the proposed renewal.”

Also Read: Vadilal Enterprises blocks renewal of key 10-year pact with ice cream maker Vadilal Industries

Vadilal Industries reported a standalone net profit of Rs 98.01 crore for FY26, down from Rs 113.88 crore in the previous year. Revenue from operations for FY26 stood at Rs 1,109.54 crore.

Last month, Vadilal appointed Himanshu Kanwar as its first non-family chief executive amid a longstanding family dispute within the promoter Gandhi family.

The appointment followed a restructuring under which three promoter-held entities — Vadilal International Pvt Ltd (VIPL), Vadilal Finance Company Pvt Ltd (VFCPL) and Veronica Constructions Pvt Ltd (VCPL) — were to be merged with Vadilal Industries.

At the time, VIL also announced other key leadership changes, including Rajesh R. Gandhi and Devanshu L. Gandhi stepping down as managing directors after resolving the family litigation. Bringing the Vadilal brand under the direct ownership of the promoters is expected to help streamline issues such as royalty payments and ease operations.

Two factions of the promoter Gandhi family have been embroiled in a legal battle in the Bombay High Court between the Mumbai and Ahmedabad branches over brand rights and regional sales territories for the Vadilal ice cream business.

Also Read: Vadilal Industries challenges order granting interim relief to Mumbai faction

A report by IMARC projected India’s ice cream market to reach Rs 57,500 crore by 2033, growing at a CAGR of close to 11% between 2025 and 2033.