Nestle’ super top grade ice-cream brand Movenpick is planning to invest upwards of $5 million to build cold chain infrastructure and logistics in India.
The group has re-entered Indian Market in early 2014 by signing a master-franchisee with Star Foods Speciality for the third time since setting up its subsidiary back in 2000.
Dennis Korrey, Regional Business Head, South Asia, Movenpick, said, “In the past, there were issues like logistics and infrastructure in the Indian market due to which we had to withdraw our operations. Now, we will invest above $5 million to purchase the necessary infrastructure to build the Movenpick business here.’’
Temporarily, even the MNCs Indian master franchise, Star Foods Speciality is hoping to raise money by diluting 10 per cent stake in the company to PE funds. “With single brand retail we are allowed to dilute 49 per cent stake in the company. We may dilute 10-15 per cent stake to a PE fund in next 2-3 years if required,’’ said Tarun Sikka, Managing Director, Star Foods Speciality.
Sourcing Movenpick directly from Switzerland, the super premium ice-cream attracts steep import duties at 23 per cent in India.
“Unlike in countries like Australia with import duties for premium ice-cream at 1 per cent, duties in India are a lot more at 23 per cent. However, the relatively cheap cost of labour compensates for the high import duties making Movenpick’s pricing on par with other countries,” added Koorey.
Further, Movenpick is now positioning itself as a ‘dessert’ with its cafes selling waffles, pancakes and sundaes.
It has launched its fourth cafe in Mumbai recently; after opening outlets in Delhi, Chennai and Bengaluru.