Financial Daily from THE HINDU group of publications
Friday, Aug 27, 2004
Saravana Stores steps into the ice-cream parlour
Mr S. Yogarathinam and Mr S. Rajarathinam, Partners, Saravana Stores Enterprises, at the launch of Jamaai Ice creams in Chennai on Thursday. Shaju John
Chennai , Aug. 26
SARAVANA Stores Enterprises, the Chennai-based diversified retail stores, has entered the ice cream business with the launch of Jamaai brand of ice creams.
Speaking to presspersons at the launch today, Mr S. Kannan, consultant for the project, said that Jamaai would be available in stores from tomorrow in a wide range of flavours in cups, bars, cones and slabs.
In the first month of launch, it will be sold in 150-200 shops and by the next summer, in 1,000 outlets in Chennai alone.
Jamaai will also be available throughout Tamil Nadu in about 3,000 outlets.
Saravana Stores has set up a 10,000-litre-a-day ice-cream production unit, which will soon expand to a 30,000-litre-a-day unit.
Mr S. Yogarathinam, partner in Saravana Stores, said that the retailing philosophy that rules any of Saravana Stores's businesses - low margin, high turnover - would apply to Jamaai.
"The range would be cheaper than its equivalent in the market. Super ice-cream for a super price," he said.
The ice-cream market in the State is estimated around Rs 150 crore, with the branded or organised sector accounting for about Rs 60 crore.
Jamaai hopes to corner at least Rs 25 crore of this market in about a year.
"At the prices that the brand will be placed, it will expand the market," he said.
Jamaai will be available from exclusive dealers, but not necessarily exclusive ice-cream parlours. It will be widely present in all types of retail stores, including telephone booths.
Saravana Stores, whose annual turnover is around Rs 200 crore, is engaged in retailing of a wide range of products, including stainless steel utensils, jewellery, textiles, consumer durables, provisions, eateries and now, ice cream.
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