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May 1, 2011
22.Hamdard Roohafza
" Launch Roohafza Ice Candy"
"The great and old brand hamdard and its brand Roohafza is known to all of us.Launch Rohafza Ice candies which would have all the goodness and benefits of the sharbat, and no mother would say no to this ice candy"
Roohafza specializes in drinks not ice candies. They are very different. Drinks don't require as much hassle to transport as would ice candies. You will refrigerated trucks, a more fine grained inventory management (shelf life of ice candies are less than drinks). You will also need to set up a new factory for the purpose. Unless, there is a proven market for this product, its a bad investment. Also I am not sure of the WACC and IRR for a ice candy business. It would be better if they made newer types of drinks
Companies make profit - Companies make investments - They diversify - related or unrelated. This would certainly be related diversification. When I have a drink - I can offer the same taste and goodness in a ice candy too.
They can easily analyze the ice candy industry. And everything does not work on proved/unproved markets.Ice candy market is a great market in India where 8-10 months are really hot.
I think the one area where Roohafza has truly missed is by not releasing pouches of Roohafza. Not everyone wants to travel around with a bottle. Not everyone can afford a bottle. Thus a ten- fifteen Rs pouch that would enable one to make two- three pouches would be real game changer
Yeah it will be healthier also
ReplyDeleteRoohafza specializes in drinks not ice candies. They are very different. Drinks don't require as much hassle to transport as would ice candies. You will refrigerated trucks, a more fine grained inventory management (shelf life of ice candies are less than drinks). You will also need to set up a new factory for the purpose. Unless, there is a proven market for this product, its a bad investment. Also I am not sure of the WACC and IRR for a ice candy business.
ReplyDeleteIt would be better if they made newer types of drinks
Companies make profit - Companies make investments - They diversify - related or unrelated. This would certainly be related diversification. When I have a drink - I can offer the same taste and goodness in a ice candy too.
ReplyDeleteThey can easily analyze the ice candy industry. And everything does not work on proved/unproved markets.Ice candy market is a great market in India where 8-10 months are really hot.
I think the one area where Roohafza has truly missed is by not releasing pouches of Roohafza. Not everyone wants to travel around with a bottle. Not everyone can afford a bottle. Thus a ten- fifteen Rs pouch that would enable one to make two- three pouches would be real game changer
ReplyDelete