City-based Kamaths Ourtimes Ice Creams, known for its 'Natural Ice Creams' brand, has drawn up a Rs 50 crore capex plan for expansion over the next four years, including a planned entry into the UAE and South-East Asian markets.
"We are looking at an investment of Rs 50 crore in retail and logistics by FY2015, besides entering the UAE and South-East Asian markets," Kamaths Ice Creams Director Srinivas R Kamath told PTI here. The project will be financed through promoter contributions and bank loans, he said. The company had increased its manufacturing capacity in Mumbai from 2 tonnes a day to 12 tonnes a day last year, which involved a capital outlay of Rs 30 crore.
"We are now looking at setting up a new manufacturing facility in the central region to cater to the northern markets. We are also looking at expanding our stores from 250 in the next four years from the present 99," he said. The Rs 3,000 crore ice cream market is growing at 30 per cent per annum, Kamath said, adding that unbranded players accounts for Rs 2,000 crore of the market, while the remaining Rs 1,000 crore is shared by branded players.
Amul has the largest share in the branded ice cream segment, followed by Kwality. Kamaths Ourtimes Ice Creams, which clocked a net profit of Rs 6 crore in FY2011 on a turnover of Rs 40 crore, hopes to increase sales by 50 per cent in the current fiscal to Rs 60 crore and net profit to Rs 10 crore. Kamaths Ourtimes Ice Creams has a strong franchise network in Mumbai, Ahmadabad, Pune, Hyderabad, Bangalore, Indore, Jaipur, Nagpur, Aurangabad, Nashik, Mangalore, Udipi, Manipal, Mysore, Belgaum and Goa.