Indian billionaire Mukesh Ambani’s consumer goods business has launched an ice cream brand with products starting at 10 rupees (10.53 cents), entering a market that includes major global brands such as Magnum and Baskin-Robbins as it deepens its push into packaged goods.
Asia’s richest person disrupted India’s telecoms market 10 years ago with cut-throat pricing to make Reliance the leading player in the industry before relaunching Campa, a soft drink brand that triggered a price war in the competitive cola market.
The new ice cream brand, called Bombay Creamery, will offer cones, cups, tubs, bars and sticks, Reliance Consumer Products said on Tuesday.
Amul, Vadilal, Mother Dairy, Kwality Wall’s and Hatsun Agro’s Arun are among the top brands in India.
Bombay Creamery ice creams are available in western India and will soon be rolled out across the country, the consumer goods arm of Reliance Industries said.
“The real competitive advantage will come from Reliance’s ability to combine pricing, retail reach, distribution … and data,” A. Manikandan, CEO of Tiger Consulting, said, adding that the low price point could encourage consumers to try out the brand.
A Reuters check on a grocery delivery app showed Amul’s mango-flavoured ice cream stick was the cheapest at 20 rupees.
The company could put significant pressure on national and regional rivals if it turns first-time buyers into repeat consumers and expands its freezer network across markets, Manikandan said.
Ice cream brands often supply freezers to retailers, helping ensure their products are stocked and visible to shoppers. Reliance has already placed fridges with the Campa logo in stores as part of its broader consumer goods push.
“(The ice cream launch) is part of their long-game strategy. With a complete ecosystem in place, they can … capture wallet share across the products consumers buy,” said Deven Choksey, managing director of fund and wealth manager DRChoksey FinServ.
($1 = 94.9500 Indian rupees)
Reuters
