Hangyo Ice Cream Secures ₹211 Crore Investment from Faering Capital to Fuel Growth

Mangaluru-based Hangyo Ice Cream has successfully raised approximately ₹211 crore from private equity firm Faering Capital. This significant funding injection will empower Hangyo to enhance its production capabilities, accelerate product development, expand its market presence, and boost advertising efforts.

Strategic Investment and Growth Plans

Following this investment, Faering Capital has acquired a 24% equity stake in Hangyo Ice Cream. The funds will be allocated to several key areas: increasing production capacity, diversifying product offerings, and extending market reach primarily across southern India. Managing Director Pradeep Pai highlighted that the investment is crucial for taking Hangyo to the next level. “This funding will drive our innovation in new product development, market expansion, and advertising,” Pai told ET.

Market Position and Revenue Goals

Founded in 2003, Hangyo Ice Cream has built a robust presence in Karnataka, Tamil Nadu, Kerala, Goa, Andhra Pradesh, Telangana, and Maharashtra. The company operates two manufacturing facilities in Karnataka, producing 120,000 litres of ice cream daily. With approximately 350 distributors and 30,000 retailers, Hangyo achieved a revenue of ₹300 crore in the fiscal year 2023-24 and aims to reach ₹700 crore within the next four years. Karnataka remains a major revenue contributor, accounting for nearly half of its turnover.

Industry Trends and Emerging Competition

India’s ice cream market, valued at around $5 billion this year, is experiencing a surge of new-age brands such as Noto, Get-A-Way, Go Zero, Frubon, and Minus 30. These emerging players are challenging established brands like Amul, Mother Dairy, Hindustan Unilever’s Kwality Walls, and Jaipuria Group’s Cream Bell. The competitive landscape is further evolving with reports that Hindustan Unilever may spin off its ice cream business into a separate unit.

Sameer Shroff, Managing Director at Faering Capital, expressed enthusiasm about the partnership. “Hangyo Ice Cream is a fast-growing and profitable consumer company with high-quality products, state-of-the-art manufacturing, and a broad distribution network. We are excited to support Hangyo in its next growth phase,” Shroff noted.

As Hangyo Ice Cream prepares to leverage this new capital for growth, the company's strategic initiatives will likely enhance its position in the competitive ice cream market, offering diverse flavors and expanding its footprint across India.