 "HUL's Magnum ice-cream has got competition. And it's coming this summer")
India’s largest fast-moving consumer goods company may have taken its Magnum ice-cream national, but this premium desert, priced at about Rs 75 a stick, will soon get stiff competition from domestic rival Amul, which plans to launch Creme Rich, a super-premium ice cream brand, and India’s first Greek-style frozen yogurt, this summer.
According to a report in Business Standard ,Creme Rich will see a pan-India roll-out and will cost around Rs 40-45 a unit as against Rs 85 for a Magnum stick.
Magnum was launched in Chennai in April 2013 and is currently available in Mumbai, Pune, Bangalore and Hyderabad.HUL has began the national rollout of its premium ice cream brand, Magnum, in February this year.The The company is also working to increase its product portfolio and is launching new flavours like fresh mango, pistoria, caramel biscoti, Tiranga ice candy, pink currant and a truffle bar, according to this Indian Express report.
Amul, which already accounts for 40-45 percent of the organised ice cream market in India, has so far maintained a lead over rivals due to its aggressive pricing and the company is likely to continue with this strategy even in the premium segment.
The ice cream market in India is estimated to be around Rs 3,500 crore, of which over 40 percent belongs to the organized sector, growing at about 15 percent year on year.
Large investments in advertising and infrastructure development, diversification of product portfolio targeting specific consumer segments and the entry of multinationals into this business is probably what has led to this phenomenal growth in the ice cream industry.
Research firm Euromonitor estimates that India’s organised market will touch Rs 6,100 crore by 2017. The market size doesn’t seem impossible given thatglobal premium brands are now expanding in India too, while several Indian companies are betting big on natural and gourmet goodies.