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Ice cream maker mulls entry into dairy industry

IANS  |  Chennai 

Creambell ice cream brand's parent company Devyani Food Industries is looking at venturing into the dairy industry, said a top official on Friday.

"We will be taking a call on venturing into the dairy segment. The milk market is regional in the sense, it has to be sold in the markets near to the plant. We just entered the non-dairy market," CEO Nitin Arora told IANS on the side lines of a company event.

The company is part of the $1.4 billion turnover RJ Corp having beverages, quick service restaurants, life science, coffee chain and others within and outside India.

He was here to announce the Rs 505 crore turnover company's foray into Tamil Nadu's ice cream market with Creambell.

Queried about plans of promoting another brand catering to the premium market in the state, Arora said: "Currently Creambell will be the mother brand under which there will be sub-brands. We have completed the brand architecture study and a decision based on the study will be taken."

Speaking about the Rs 5,000 crore ice cream industry, Arora said the sector is logging around 15 per cent annual growth.

"We expect to close this fiscal with a turnover of around Rs 600 crore. The last three months of the fiscal year gives nearly 50 per cent of annual turnover for an ice cream maker," Arora said.

He said the Tamil Nadu market will be catered out of the company's plant in Goa.

Devyani Industries has its ice cream plants in Himachal Pradesh, Goa and Uttar Pradesh with a cumulative capacity of 75,000 litres per annum.

The company is investing over Rs 150 crore in expanding its capacity.

According to Arora, Creambell ice cream has shopkeeping units (SKU) starting at Rs 5 and going up to Rs 50 which is competitive compared to others in the market.

The company will also open its high-end parlours under the brand Scoopers.

--IANS

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, March 17 2017. 14:52 IST
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