Nestle India managing director Carlo Donati has all along firmly ruled out an entry into the ice cream business in the country citing cold chain links as the problem area. Donati was recently quoted as saying that the company would incur losses Rs 20-30 crore a year if Nestle entered the ice cream business at this stage.

Industry observers, financial analyst and local ice cream manufacturers now feel that close on the heel of this development in the US market, Nestle India might re-evaluate its position on a foray into the ice cream business.

This turn of events has come even as Nestle India was considering a major foray into ultra heat treated milk and mineral water as reported earlier.

The Swiss food major on Thursday announced the formation of a 50:50 joint venture comprised of Nestle USA's novelty ice creambusiness and Pillsbury's US Haagen Dazs frozen ice cream business. The combined sales of these two units amounted to $600 million in 1998.

Industry sources now say Nestle India might get down to scripting its strategy on the ice cream business in keeping with its basic philosophy of product availability "whenever, wherever and however" the consumer desires. These sources felt that Nestle is expected to test the market through ice cream parlours and restaurant chains such as Nirulas in Delhi, and through outlets in cineplexes/multiplexes. Subsequently, ice parlours similar to the ones Haagen Dazs runs in many markets may be opened.