NEW DELHI, Sept 1: RJ Corp group firm Devyani Food Industries is expecting its ice cream brand ‘Creambell’ to clock Rs 500 crore sales by the end of next year on the back of capacity enhancement and retail expansion.
The company will increase its outlets to 45,000 from the current 37,000 by the end of 2014 while it draws up plans to to enter states like Tamil Nadu, Gujarat and Kerala.
It is also mulling over setting up a new manufacturing plant in eastern India by 2015.
“Our sales vision is to achieve a target of Rs 500 crore for Creambell by the end of December 2014,” Devyani Food Industries Chief Executive Officer Nitin Arora told PTI.
This will be done by following multi-pronged approach such as capacity enhancement, increasing the presence and availability of Creambell in the market and fine tuning the internal business processes, he added.
The company, which is currently present in 19 states with around 37,000 retail outlets across the country, aims to increase the number of outlets and foraying into new states.
“From the present 37,000 outlets we are targeting 45,000 retail outlets by the end of 2014,” Arora said.
The company will also be entering the states of Tamil Nadu, Gujarat and Kerala, Arora said, without giving the time line.
In view of the expansion, the company is also gearing up to enhance its production, which currently stands at 7.5 million litres during peak season month to 9 million litres.
“During this year we plan to expand the capacity of our Kosi plant in Uttar Pradesh. Ours is a seasonal business but it is important to cater to peak demand seasons,” he added.
When asked how the company plans to fund the expansion plans, Arora said: “It will be done by internal accruals. We have had a capex outlay of Rs 225 crore for a period between 2011-2014.”
In the next round of capacity building the company also plans to open a new manufacturing facility in 2015 in one of the states in the eastern India and plans to invest nearly Rs 55 crore for this.
“The new plant, that will be fourth for the company, can be in one of the four states — Jharkhand, Bihar, West Bengal and Odisha,” he added.
Creambell currently has three manufacturing plants in Baddi, Goa and Kosi. It competes with likes of Mother Dairy, Kwality Walls, Vadilal and Amul in the ice cream space. (PTI)
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