Voltas will supply the first tranche of specialised freezing systems for HLL's utectic solution packs used in cycle vending ice cream cabinets. The move will enable HLL to increase the reach of frozen desserts to over 900 towns by the end of the fiscal year 2000-2001. Of the projected 18 per cent growth in annual sales of frozen desserts, HLL intends to achieve a major portion through its cycle-vendors. The utectic solution has a special freeze formula to ensure frozen conditions of -25 celsius for over ten hours. It is spread on the walls of the trolleys and cycle vending ice cream cabinets.

The supply of 90 freezing systems from Voltas would be made by the end of December and will be on a trial-basis. It will be used tofreeze the utectic solution which has a special freeze formula to be used on the walls of its cycle vending ice cream cabinets to maintain temperature at - 25 degree celsius. According to an HLL spokesperson: "The company intends to strengthen its retail cold chain with a slew of local tie-ups. Last year the company sourced about 10,000 cabinets for cold storage from Austria, but we have decided to tie up with local manufacturers."

Says Satish Turlapati, analyst at SSKI: "HLL's ice-cream market has just grown by 7 per cent in value in the last two to three years. The company had targeted a growth in sales of 18 per cent and it wants to double sales every four years. But they are facing tough competition from Amul. HLL has roughly about 60 to 65 per cent share of the organised market."

According to HLL, strengthening the cold chain for greater national presence is the only way to increase sales. It's distribution network consists of freezer-trucks which transport ice-cream from factory to the retailoutlets, cold-storage cabinets at the retail end and bicycle-vending machines. For factory cold storage, HLL already has a tie-up with Mitsubishi and Snowman.

Innovations in the distribution-related cold-chain activity is expected to provide a competitive platform to extend mobile vending to all major cities and provide retailers with energy-efficient cabinets.

INSIGHT

Move to prop HLL bottomline
In India, ice-cream is still regarded as an occasional treat. For the market for frozen desserts to really take-off, the distribution of ice-cream packs has to move from speciality works to grocery and provision outlets throughout the country. If HLL is able to substantially increase the distribution width for its frozen desserts, it could hope to increase both the width and frequency of their consumption. Not only would this help to improve HLL's earnings, it would also go a long way in expanding the market for frozen desserts in general.

-- Sarad Saraf