Cold Chain Management: The Creambell way
Managing a Cold Chain
In India, the estimated icecream industry worth is Rs 4,500 crore in 2013. It is expected to grow to Rs 7000 crore in 2018. North and West India account for 70 per cent of total sales. Currently, profit margins are ranging between 20-30 per cent. However, there is tremendous shortage of cold and supply chain facilities.
ML Arora, Vice President, Devyani Foods Ind, discusses the role of requirement of these facilities and their role behind the success story of leading ice cream brand—Creambell.
Creambell Ice Cream is one of the fastest growing ice cream brands in the country. In a modest span of 10 years, Creambell has cemented its place amongst the top five ice cream players of the country.
One of the hallmarks of Creambell’s attributes is embedded in its strive for excelling in the area Cold Chain Management.
Creambell has around 12.0 lakh cft of cold stores and 300 refrigerated vehicles to reach its panIndia customers. Currently, Creambell has three state-of-theart manufacturing plants at Baddi (Himachal Pradesh), Goa and Kosi (UP). The fourth plant is coming up in 2014 in the Eastern Sector.
“Creambell boast of world-class standards in the area of product quality. Every batch of ingredients goes through a stringent quality control, before being taken for production. The quality standards are in consonance with international norms, and no effort is spared to ensure world-class products reaches the hands of the end-users,” said Arora.
“We are currently having a pan India retail reach of over 32,000 outlets and our 60,000 Push Carts are constantly delighting consumers all over India. Our exclusive outlets are also serving flyers at airport lounges,” added Arora. He also maintained that Creambell parlours are not only spread strategically across the nation, it is also
present in neighbouring countries.
Creambell product innovation coupled with its aggressive catering strategy and approach is now sweeping the market share. “Our multiple variants in 5 litre packs are addressing our catering business into every nook and corner of all territories we operate in. To further stamp authenticity on our products, quality hospitals like Medicity, Apollo and Max Hospitals have chosen us to serve at their hospitals. In the hospitality industry, our partners are hotels such as Oberoi, Leela Kempinski and The InterContinental,” said Arora.
Role of Efficient Supply Chain
The supply chain is very crucial in the ice cream industry to maintain the shape, size, colour, texture
and the taste of the product. “You do the best in the manufacturing of the product and if the supply chain is broken, all your efforts are wasted. We improved the supply chain/cold chain and reduced the losses to a great extent and become a national player,” Arora asserted.
Creambell’s model of supply chain is mixed one. It has its own vehicles, dedicated vehicles from reputed transporters and take from open market in case of extreme exigency. “However, we are not taking services from 3PL services at the moment, but planning to have in the coming years in the future,” said Arora.
According to him, there are only a few 3PL service providers at this moment and they are little costlier because of their higher admin expenses and limited business available to them. “They are in the evolution stage and expected to grow in a big way once international retailers open their enterprises in our country,” he maintained.
“We expect them to be more efficient, competitive, committed, quality-conscious and deliver in time,” he concluded.
ML Arora Vice President, Devyani