RJ Corp takes 100% in ice-cream venture Cream Bell

Having acquired part-owner CK Jaipuria’s share in Cream Bell,RJ Corp-owned Devyani Food Industries now control 100% of the entity.

The Cream Bell business is valued at around Rs 450-550 crore.The firm has subsequently multiplied about four-five times with capacity expansion and increase in Cream Bell’s market share.The historical valuation of Cream Bell, carried out by private investment firm International Finance Corporation (IFC) a year ago, was about Rs 120 crore.

The Cream Bell business was originally floated as Universal Dairy Products as a 50:50 venture between Ravi Jaipuria and his brother CK Jaipuria. But after mutual discussions, it was decided that CKJ exit this business. The process of the share transfer was kicked off some months back.

With the new plant set-up in Goa, Cream Bell will cater to the western and southern regions. Cream Bell has been till now largely focused in the northern region. The plant at Goa, the second for Cream Bell, is expected to have a capacity of 6-million litres. The existing plant in Baddi, also with a similar production capacity, caters to the northern markets. RJ Corp is hoping to leverage its bottling network in Goa to establish the ice-cream business in the region.

Read more in The Economic Times article.