Hangyo Ice Creams, a manufacturer based in Mangaluru, has been able to finalise approximately Rs 211 crore of funding from private equity major Faering Capital. The company plans on using this new cash to advance the productivity, innovation of new products, and geographical penetration in particular over southern India.
This fundraising occurs at a period when novel ice cream manufacturers are gradually attracting the attention of venture capital firms.
In June, an Ahmedabad-based ice cream brand raised Rs 100 crore ($12 million) in a fresh funding round from its ‘promoter group’ as well as existing investors. Likewise, another new ice cream firm recently launched a $1. $5 million from its existing investors.
Hangyo Ice Creams & Baked Foods started in the year 2003, has carved out a strong market in Karnataka, Tamil Nadu, Kerala, Goa, Andhra Pradesh, Telangana and Maharashtra. Currently, it has around 350 distributors and 30,000 dealers, which provide its products in different flavors and pack sizes cups cones, sorbets, sticks, tubs both in the general trade, modem trade and online.
Having two manufacturing facilities in Karnataka Hangyo Ice Creams makes 120000 liters of ice cream on daily basis.
Being a $5 billion industry in India this year, the market has seen a number of new brands entering the segment in the last few years. These emerging players are fighting for their relevancy in the market that large brands have for a long time dominated.