Reliance has entered India’s growing ice cream market with a new brand called Bombay Creamery, with prices starting at Rs 10 per scoop.
The move marks Reliance’s entry into another major consumer category. However, industry experts believe the company’s bigger opportunity could be its growing cold-chain network, which can support the storage and distribution of frozen products.
Reliance’s strategy is similar to its expansion in other consumer businesses. The company used scale, wide distribution and competitive pricing to grow Jio in telecom and revive Campa Cola in the soft drinks market.
India’s ice cream market is currently estimated at around Rs 37,000 crore, according to an IMARC study for Tetra Pak. Industry estimates suggest the market could grow to more than Rs 57,533 crore by 2033, driven by rising demand for premium products and new flavours.
Campa Cola Network Could Help
Reliance’s existing beverage distribution system could give Bombay Creamery a starting advantage.
N Chandramouli, CEO of TRA Research, said Reliance has already built a large network for Campa Cola, including distributors, retail outlets and refrigeration equipment.
He said Campa Cola reaches thousands of distributors and millions of retail outlets, with refrigerators already placed across the network. This infrastructure could also be useful for selling ice cream and other frozen products.
However, ice cream needs to be stored at much lower temperatures than soft drinks, making the cold-chain requirements more demanding.
Ice Cream Needs Heavy Investment
The ice cream business is more expensive to operate than conventional packaged beverages because the product has to remain frozen throughout the supply chain.
A Fortune India report estimates that an ice cream company may need to spend around Rs 300-400 crore to install one lakh freezers. Ice cream also needs to be kept at around minus 18 degrees Celsius from production to retail.
Distribution costs can also be significantly higher than those for regular packaged products.
Saurabh Sinha, marketing director at Tetra Pak South Asia, said Reliance’s entry could help the ice cream market grow faster, but expanding across India would require substantial investment.
The high cost of running an ice cream business has also resulted in a fragmented market. Different regional brands have strong positions across various parts of India, while Amul is among the few brands with a nationwide presence.
Can Reliance Build a Strong Ice Cream Brand?
Reliance’s large network and ability to offer competitive prices could help Bombay Creamery attract customers. However, experts say getting customers to try a product is different from building long-term loyalty.
Chandramouli said lower prices may encourage people to try the ice cream, but repeat purchases will depend on the product and consumer preference.
Reliance has seen both successes and challenges in its consumer businesses. Some ventures have struggled against established competitors, while others have been discontinued.
Bigger Focus on Cold Chain
For industry observers, Reliance’s ice cream entry could be about more than selling ice cream.
Chandramouli said the company’s move could indicate a wider push into the cold-chain business. The infrastructure could eventually support products such as frozen vegetables and other temperature-sensitive goods.
Whether Bombay Creamery can build a strong presence across India remains to be seen. For now, Reliance’s entry brings its large distribution network, pricing strategy and cold-chain capabilities into another competitive consumer market.
