The Hindu : Gujarat Coop.'s expansion plans

Online edition of India's National Newspaper
Sunday, May 11, 2003

Business

Business

Gujarat Coop.'s expansion plans

By Our Staff Correspondent

KOLKATA MAY 10. The Gujarat Cooperative Milk Marketing Federation (GCMMF) plans to enhance sales of Amul ice creams to 34 million litres from 24 million litres in this fiscal. Besides widening the range of products up to the super premium segment, the plan also envisages breaking into the territories of `Kulfi', a traditional favourite in India.

Among the unique products lined up for national launch are Isabgol ice creams (branded as Isabcool), and icecream with natural laxative benefits.

Claiming a 30 per cent market share against 19 per cent of Kwality Walls, in the 80 million litre branded market, the expansion plan would usher in a fierce competition with the regional co-operative sector majors such as Mother Dairy and Metro Dairy leading the markets in Delhi and Kolkata respectively. Amul is a new entrant in these markets.

Talking to The Hindu GCMMF general manager (marketing), R. S. Sodhi, said the expansion plan would require adding up another 15,000 deep freezers (cold chain) over and above its existing 30,000 freezers created since the introduction of Amul icecreams five years ago.

The expansion of the cold chain would require an estimated investment of Rs. 30-40 crores.

About 40 per cent of the new freezers will be directed to southern States, where HLL was reportedly well positioned.

Having already acquired two manufacturing facilities in Gujarat and Nagpur (earlier working for HLL) the company is also keen to acquire facilities in Delhi and Kolkata taking the total number of facilities to ten.

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