Gujarat-based ice cream maker Havmor is looking to more than double its sales to Rs 1,000 crore in next four years by expanding to new markets.
The company, which is setting up a new ice cream facility at Faridabad with an investment of Rs 80 crore, also plans to set up another unit in South to cater to the markets there.
“We are aiming to have Rs 1,000 crore sales by 2020. The company is growing between 25 and 30 per cent every year and we would achieve it,” Havmor Ice Cream Managing Director Ankit Chona told PTI.
Havmor also has plans to expand its sales network to 13 states by the year end and as part of that it has entered Delhi-NCR market today.
In 2015-16 fiscal, the company had a turnover of around Rs 450 crore, of which 85 per cent was contributed by ice cream business and rest by restaurants and fast food chains.
The company operates in 8 states and plans to expand to 13 more by adding Andhra Pradesh, Karnataka, UP, Chhattisgarh and Haryana by the end of this year.
“We have plans to invest Rs 100 crore in next three years in our production capacity. Besides, we would also be investing Rs 30 crore every year on deep freezers and store additions,” Chona said.
The company is planning to have 350 distributors by this year and expand it to 500 by the end of 2017.
“The investment would be composition of debt and internal accruals,” he said.
According to him, the domestic ice cream industry is worth Rs 8,000 crore in which the branded market is between Rs 4,000-5,000 crore and rest is with unorganised sector.
“Havmor has around 10 per cent market share of the branded segment, which is growing at 20 per cent per annum,” he said.
The company has plans to spend around Rs 35 crore on marketing/branding this fiscal, where it would spend around 70 per cent on ATL and rest 30 per cent on BTL activities.