The Hindu Business Line : Snowberry venturing into icecream market

NEW DELHI: The US-based ice cream maker Snowberry USA Inc is venturing into the Indian organised icecream market with a planned investment of $50 million (about Rs 250 crore) for setting up 1,000 parlours and kiosks across the country by 2010.

The company has set up an Indian subsidiary, Snowberry India Pvt Ltd, and would be opening its parlours under a franchise agreement with Delhi-based realty finance company Soni Buildcom.

“We are starting with 50 parlours and kiosks in Delhi and NCR before Valentine's Day in February 2009 as part of our plan for having a 1,000 store strong presence across India by end of 2010 with an investment of $50 million,” Snowberry USA Inc President , Mr Robert Barker said.

In order to be a significant player in the estimated Rs 800 crore organised ice cream market in India, Snowberry will set up a 21,000 sq ft manufacturing facility at Manesar with an investment of $5 million which would start operations next year.

“The organised ice cream market in India is around Rs 800 crore and we hope to have at least 20 per cent of the market by 2010,” Mr Barker said.

Snowberry India Pvt Ltd Vice-President, Mr Nitesh Kumar said the company will target a sales volume of $25,000-30,000 from each outlet within six months of starting operations.

The standalone parlours would be around 1,000 sq ft in size and kiosks would have retail space of around 100 sq ft each, Mr Kumar added.

Snowberry is the number two player in the US for yogurt based ice cream segment with a sale figure of $25 million last year. India is the company's second international foray, after South Korea where it claims to have the top slot in the segment. - PTI

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