Snowberry USA (SUI), an American ice-cream retailer, said it will invest $50 million (nearly Rs 250 crore) by 2010 to start its business in India. The company is entering India through franchise route. The Indian franchisee will be known as Snowberry India Private Limited (SIP).

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Snowberry will have 50 outlets in Delhi and NCR by the end of March 2009. “India is one of the key markets for Snowberry in its global expansion agenda,” said Robert F Barker, president, Snowberry USA. The company has its presence in Korea and plans to enter China next year through franchise deal. “After China, our target is to enter South Africa, Taiwan and Philippines,” added Barker.

The company expects to generate a business of $25,000 (nearly Rs 12.5 lakh) a day from each outlet within 6 months of its opening. The standalone outlets will be set up up in an area of 1,000 sq ft and also offer Coffee, Bakery and Fresh Juice to attract extra footfalls.

The organised ice-cream industry in India is estimated at $ 200 million. Experts are sceptical about Snowberry's ambitious projections. “In India, people eat ice cream only during summer. Even the upper middle-class families do not consume ice-cream that often. Achieving the revenue of Rs 12.5 lakh a day may be a daunting task, said Purunendu Kumar, associate vice-president, Technopak.

In India, the market share of organised retailers in ice-cream business is minuscule. Indian brands like Mother Dairy, Kwality, Walls and Amul are sold through local vendors. According to an analyst in Mumbai, a vendor sells in the range of Rs 1,000-2,000 a day, depending on the location. More than 80 per cent of sales for ice-cream manufacturers come through street vendors. It is unlikely that an ice-cream retailer will achieve sales to the tune of Rs 12.5 lakh from each stores.

Baskin Robbins and Gelato are the other international ice-cream retailers who are doing business in India.

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