CHENNAI: In a strategic move to offset ongoing losses and promote its new brand, ‘Aavin Ice Cream,’ the state-run Aavin has announced plans to raise prices and enhance the quality of its ice cream products, effective November 1.
Aavin officials revealed that the prices for over 100 ice cream variants will increase by Rs 3 to Rs 70. This decision comes as agents express concerns over low profit margins and lack of interest in selling the products due to insufficient returns on investment.
In addition to the price adjustments, Aavin plans to introduce several new ice cream flavors while reducing the prices of some existing varieties, including Kulfi. A senior official, who wished to remain anonymous, stated, “Kulfi Ice, currently priced at Rs 30, will now be available for Rs 15 at Aavin’s retail outlets and other stores. The price for a large Kulfi will rise to Rs 40.”
To encourage bulk purchases for events such as weddings and birthday parties, Aavin will offer discounts of up to Rs 100 on 4,500 ml bulk-pack ice creams. However, the production and sale of certain varieties, including Sugar Free Vanilla and Long Kulfi, have been suspended, although these will soon be reintroduced at new prices and flavors.
Officials also indicated that current prices will remain unchanged throughout October, coinciding with the Deepavali festival. “The finalization of the new price list for each category of ice creams is underway, and the new prices will take effect on November 1,” an official added.
In conjunction with the ice cream price changes, Aavin will launch eight new sweet varieties for Deepavali, including Ghee Badusha, Nuts Halwa, Stuffed Moti Pak, Kaju Pista Roll, Kaju Katli, Assorted Pack, Aavin Mixture, and Butter Murukku. A special discount will be available for customers purchasing Aavin milk products worth Rs 1 lakh.
Meanwhile, the planned price increase has drawn criticism from a faction of Aavin milk agents, who have filed a petition with the Madurai Bench of the Madras High Court. S.A. Ponnusamy of the Tamil Nadu Milk Dealers’ Welfare Association condemned the price hike, stating that it would not benefit either Aavin or its agents. “Increasing the price of ice cream variants during the rainy season is impractical. Dealers may incur losses by having to store products for extended periods. Aavin should reconsider its decision. The introduction of new Deepavali sweets seems to be a strategy that primarily benefits Aavin, rather than consumers,” he emphasized.
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