How Frosty Boy successfully navigated the challenging Indian market

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Gold-coast based dessert and beverage manufacturer, Frosty Boy Australia, has found a way to crack the challenging Indian market, which imposes import duties of up to 50%.

Following four years of intensive, on the ground research, Frosty Boy decided to complete manufacturing processes locally in India, while maintaining control of product quality and intellectual property.

The move has resulted in Café Coffee Day – one of India’s largest coffee chains – begin serving milk shakes using Frosty Boy’s formulated milk shake blend.

Frosty Boy Managing Director Dirk Pretorius says there has never been a country more difficult to crack than India.

“The main challenges have been import duties, which can be up to 50 percent, a very different business culture to us, plus they are understandably very protective of their own industry,” Mr Pretorius explains.

He says the decision to complete manufacturing locally came after intensive knowledge building to ensure it would make importing into India viable for Frosty Boy.

“This included our leadership team spending quality time in India to build knowledge of the local QSR industry and how our products could best be implemented, and we have full-time personnel on the ground to support this ongoing.”

India has one of the fastest growing food industries in the world, valued at US$50 billion. With ice cream forecast to achieve a compound annual growth rate of 17% until 20212, India was the perfect target for Frosty Boy, ensuring the company continues its 20% year upon year growth.

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