Daijiworld Media Network - Business

Mangaluru, Apr 18: Be it summer or winter, cold or hot ice cream and frozen desserts have come to be closely associated with fun and indulgence. Over the years Icecreams have graduated to become an all-season food affordable and reachable to one and all. When brand names in icecream segment rule the roost in major cities of India having captured a sizeable market share, the coastal districts of Dakshina Kannada, Udupi and Uttara Kannada have shown a different trend as far as ice cream is concerned. The people of this coastal districts have not only withstood this generaltrend noticed elsewhere in the country but also have given a run for the money to these bigwigs by strongly patronising local brands of ice cream.

HANGYO ICE CREAMS of Hangyo Ice Creams Pvt Ltd, the flagship company of Srikrishna Group promoted by Pai Brothers of BHATKAL, is one such popular and ubiquitous brand name in this segment in the coastal districts of Karnataka. Even while facing the onslaught of the MNC’s this local brand succeeded in establishing a firm grip in the coastal ice cream market scene and fortified its presence due its quality product and vast and organised distribution network. Hangyo has acquired an enviable market share in the ice cream segment and the popularity of the brand has been on the rise. The Company has come out with a range of delectable and delightful ice creams - dollies, candies, kulfis, cones, bars, Gudbud, Fun Treat and premium veriety of ice creams and milk products, to cater to the taste buds of one and all. All these years the brand “Hangyo” has brought smiles on the faces of thousands of its valued customers apart from giving a reason to smile to the company which has worked conscientiously to build the brand. Incidentally, the brand’s tag line ‘share a smile’ is the expression of what the brand has been able to accomplish.

Pradeep Pai

Today, after nearly a decade and half “Hangyo” has become a leading brand and a household name in the coastal districts of Karnataka with its quality products and strong retailing network. Having found a strong foothold here Hangyo, which was only a regional player to start with, has slowly shed this tag and has made foray in the Konkan belt and has found acceptance. With an annual growth rate of nearly 30 % in the last five years Hangyo is eyeing to reach an annual turnover of Rs. 100 crores by 2017, which speaks volumes of the tremendous headway the company has been able to attain. Riding on the strength of 140 SKU’s of ice creams and other milk products, over 9000 retailers, strong market presence in 6 southern states and with an ambitious expansion drive Hangyo will continue its vociferous journey as a major player in the ice cream business.

It was in 2002 that Hangyo was incorporated as the flagship company of the Srikrishna Group which was established in 1989. Srikrishna has the distinction of being the first organised private sector venture inthe milkindustry in Karnataka. Hangyo Ice Cream which also has many firsts to its credit is considered to be Karnataka’s first private ice cream manufacturer in the organised sector. Since its inception the company has given utmost priority to quality controland the ISO certification 22000:2005 to both the manufacturing units clearly demonstrates the company’s desire to complywith statutory and regulatory food safety requirement applicable as per ISO certification. The company has been able to attain steady growth primarily due to its strong distribution network and a good cold chain infrastructure spread over the urban and rural areas. The company has over 9000 retailers in its operational area spreading over six states. In the urban pockets it has forged valuable association with retailing giants like ‘Big Bazar’, ‘More Outlets’ and Reliance Fresh to display and sell its products. This has greatly increased the visibility and marketability of the product in a convenient and cost-effective way.

In fact ‘Hangyo’ entered the highly competitive ice cream market in the new millennium just at the opportune time when the Indian market had begun to open up for global competition. Increased urbanisation along with the trend or eating out, increased disposable income and diversity in food variety in the market fuelled the growth of the segment and thereby there was greater demand. Hangyo was in the market at this appropriate moment and was able to make its presence felt bycareful positioning and clever marketing strategy.

Strong retailing network

Managing Director of Hangyo Ice Creams Pradeep G Pai pointsout “A strong retailing network and giving top priority to maintain the quality of the product has helped us to find the niche in the market. A chain of franchisees called “Hangyo Parlours” and “Hangyo Shoppes” have been the backbone of our marketing network. Apart from retailers, wehave franchises called “Hangyo Parlours” and “Hangyo Shoppes” and the visibility factor has given us a tremendous push to market our products. Now the company has established 57 Shoppes and 117 parlourfranchises in different parts of the state. Recently we have tied up with IOC to establish retail outlets and as per this arrangement we are planning to establish 50 outlets in various IOC petrol pumps by 2017”. This is certainly quite a leapfrog for Hangyo which began its first parlour in 1997 by selling softies.

Despite the strength of some of the international and popular national brands of ice creams Hangyo has been able to hold on its own. This is mainly because Hangyo had quality products and it concentrated all its energy and focus on getting a strong base in the tier II and other smaller cities and then foray into bigger cities and the gamble has yielded rich dividend to the company. “The established brands first concentrated on metros and bigger cities and then slowly began to focus on tier II and tier III cities. However, we have grown from tier II and III cities to reach out to metros and other bigger cities. The strategy has worked wonders for us”, Pradeep Pai states.

The combined effect of the company’s sustained endeavours has had made Hangyo Ice Cream achieve an annual turnover of over Rs 83crores which speaks highly about the company, its product and its core marketing strategy.

Managing growth prospects

Today, Hangyo is producing 40000 litres of ice cream every day through its two state of the art plants established at Heroor Village, Brahmavar and Kirwatti of Yellapur taluka. They are in various presentations like cones, candies, ice-lollies, dollies, kulfis, bars, cups, economy and family packs – a mindboggling 55 varieties of ice creams. The company which has also the capacity to process 20,000 liters of milk and milk products processes about 19,000 liters on a daily basis.

The Company had started off with a full- fledged manufacturing unit in Heroor village of Brahmavar in Udupi district in 2003. The Brahmavar plant has about 275 employees of which about 80 are women. Having garnered a sizeable market share in the ice cream segment and to cope with increasing demand arising out of the positive response from channel distributors in 2012 the company spent almost Rs.6 cr and established a State of the art plant at Hosalli Village, on Kirwatti National Highway near Yellapur in Uttar Kannada district just 45 kms from Hubli, as part of its expansion plan. The new plant with a capacity to produce 25,000 liters of ice-cream and ice creams every day, has given employment to over 200 employees that include 40 women employees.

To keep pace with the processing and manufacturing process continuous freezers have been installed along with compatible packing capacity to support the production process. The company spent an additional Rs.12 crores to upgradeits machinery in May 2015. The company has come up with a new imported and automatic Extruder plant and flavoured milk unit.

The expansion spree will continue as the company is determined to set up a dairy unit in Bangalore by 2017. Plans are also on the anvil to enter Mumbai market by 2017 in a big way. To begin with, the company will concentrate to find base in South and Central Maharashtra. As of now the company has opened its franchise outlets in Solapur and Kolapur in Southern Maharashtra. Plans are also afoot to enter Tamilnadu through Palghat and Coimbotore.

Hangyo Ice Creams Registered Office is located in Sterling Chambers, Kalakunj Road, Kodialbail, Mangalore. The parent company of Hangyo -Srikrishna Milks Private Ltd is still active and is collecting about 60,000 liters of milk from 8 chilling centres in different parts of Karnataka. The company has crossed 100 crore turnover and by 2020 both these companies are expected to reach a turnover of over Rs. 250 crores, which looks attainable considering the rapid strides the company has been making all these years.

The company is managed professionally with the help of a Board of Directors under the Chairmanship of Sri Dinesh R Pai and Sri Pradeep Pai who is the Managing Director. He is ably assisted by cousins Sri Jagadeesh Pai and Sri Ganeshprasad Kamath and Sri Satish Pai. The board is assisted by a team of enthusiastic and experienced Professionals who keep a tab on the market trends and other developments in the segment.

The company has a separate quality control and R & D section. As part of its corporate social responsibility Srikrishna Group has been helping about 3500 families to earn their livelihooddirectly and indirectly. It has also been conducting annual interschool cricket tournament so as to give fillip to both sports and academics.

Hangyo brand of ice creams and milk products have become a household name in the entire Konkan belt in a short span of time. The company is sure to continue its victorious journey to be a part of our lives spreading happiness and Share a smile to one and all.