Roll no-046, ITM, EMBA 15,KHARGHAR.
Vadilal Industries Ltd is an Indian ice cream and flavoured milk manufacturer. The company is also one of the largest processed food manufacturers in India with significant exports of frozen vegetables and ready to eat snacks, curries, and breads. Vadilal Gandhi started a soda fountain in 1926. He passed on the business to his son, Ranchod Lal, who ran a one-man operation. Eventually, Ranchod Lal’s sons, Ram Chandra and Lakshman, inherited the business and they were instrumental in giving a new direction to the company. By the 1970s, the Vadilal Company had evolved into a modern corporate entity. Vadilal offers a range of ice creams in the country with multiple flavors and packs, across forms (cones, candies, bars, ice-lollies, small cups, big cups, family packs, and economy packs). In addition to a supermarket presence, Vadilal also has a retail presence through its Happiness ice-cream parlors, which are run through a franchisee model. Vadilal entered the processed foods industry to optimise utilisation of its extensive cold chain network in the 1990s. It caters to the domestic and export markets with products such as frozen vegetables and ready to eat snacks, curries and breads, in addition to the traditional core ice cream business.Vadilal Industries has two ice cream production facilities – one at Pundhra in Gandhinagar district, Gujarat and the other one at Bareilly in Uttar Pradesh. It has a very strong distribution network of 50,000 retailers, 250 SKUs (stock keeping units), 550 distributors, 32 CNF and 250 vehicles for delivery of goods.

To Calculate beta of Vadilal Industries and find its significance using regression analysis with NIFTY50.

Data collection:
The closing price data of Nifty50 and Vadilal Industries was taken from for the time period 1st March 2019 to 28th Feb 2020.
From the available data, the closing rates of all the Fridays in the year was sorted to find out weekly returns for both Nifty as well as Vadilal Industries . Then the weekly returns was calculated for both by using formula –
Weekly Return =(C3Vadilal Industries 2)/(C2*100)
where, C3 is present week closing price and C2 is the previous week closing price.
Once the data is calculated, weekly return column for NIFTY50 is considered as “X” variable and the weekly returns column for Vadilal Industries is considered as “Y” variable.

Data analysis:
Using the Regression Add-on in Microsoft Excel Data Analytics tool we get following values:
R Square R2=0.1448
N (Observations) = 51
F = 8.1317
Therefore, formulating below question:
Y^= 0.8793+1.1373X(2.8516)
t-stat =2.8516, N=51, R2=0.1448, F=8.1317
The above equation tells us the relationship between NIFTY50 (X) and VADILAL INDUSTRIES (Y),
that is Price and Demand. If there is in NIFTY50 by 1 unit then the vadilal industries rises by 1.1373 and vice versa.
t-stat for b is 2.8516 and the t value is 0.0063 which means b is statiscally significant at 2% level.
R2 is 0.1448 which means 15% of Y is explain by X, which means 85% are other factor which are not in the model.

The model is good but we can depend only 15% on it.