The Hindu Business Line : Blossom Foods to expand network

With about 60 per cent market share in the ice-cream segment in Central India, the Nashik-based Blossom Foods Pvt Ltd is all set to spread its network to Gujarat and Maharashtra.

Talking to Business Line, Mr Ajay Yadav, Executive Director, Blossom Foods Pvt Ltd, said to cater to these markets, the company has set up another factory in Sinnar in Nashik with an investment of Rs 5 crore in April 2006. The production capacity is 15,000 litres per day, which could go up to 18,000 litres depending on the demand, he said.

This is the third facility of the company, the other two being in Lucknow, started in 2005 and Nagpur in 2006. It would be setting up the fourth factory at Chhattisgarh this year with an investment of Rs 3.5 crore, he said. The new facility would be able to manufacture 12,000 litres of ice cream on a daily basis, he said.

Mr Yadav said the company is estimating to garner revenue of about Rs 8 crore during the first fiscal (2007-08), which would mean a market share of about 12-15 per cent.

The total Maharashtra market is to the tune of Rs 80 crore of which Rs 20 crore came from the unorganised sector. The domestic market for ice cream is about Rs 700 crore and the unorganised sector contributed to Rs 400 crore.

The company, during 2005-06, had recorded revenue of Rs 40 crore and hoped to touch a turnover of Rs 50 crore during the current fiscal. He said that ice cream lovers could eat ice cream for as low a price as Rs 5 to Rs 100 per scoop.

Mr Yadav said the company, which has about 5,000 dealers with about 50 exclusive parlours, would be opening up five exclusive outlets in Pune. The locations have been identified and would begin it operations soon, he added.

More Stories on : Market Shares | Dairy & Dairy Products | Maharashtra

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