From Rs 13,000 to 8000 CR: How Did RG Chandramogan Build Arun Ice Creams into a Billion-Rupee Brand?

In the sweltering warmth of Chennai, where even the breeze carries a hint of summer, one man found a way to cool the city—one scoop at a time. RG Chandramogan, a visionary with just Rs 13,000 in his pocket, transformed this modest beginning into a frosty empire worth Rs 8,000 crore. His journey began with a small idea—one that blossomed into Arun Ice Creams, a brand now synonymous with joy across the southern skies of India. While other industry giants battle for national dominance, Arun Ice Creams remains the undisputed favourite in the South, offering a scoop of nostalgia and a taste of home. 

From a tiny dairy venture to becoming the crown jewel of Hatsun Agro Product Limited, Chandramogan’s story is a testament to passion, persistence, and perfect timing. What started as a dream in a quaint Chennai office is today a thriving conglomerate, built on the simple pleasure of serving happiness one ice cream at a time.

A Dream Born in 250 Sq. Ft.

In 1970, while most 21-year-olds were still figuring out their paths, RG Chandramogan had already decided to make a bold leap into the unknown. With his pockets lighter and dreams larger, he started what would become a billion-rupee empire in the most unexpected way—by selling ice candies out of pushcarts. His capital? A mere ₹13,000, scraped together by selling family land. With three employees and a cramped 250 sq. ft. space in Royapuram, Chennai, Arun Ice Creams came to life. Chandramogan's decision to enter the ice cream business wasn’t driven by passion for the product but rather by practical limits—other ventures required more money than he could muster.

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Scooping Success: From Pushcarts to Tamil Nadu’s Ice Cream King

What started as a modest idea—selling stick and cup ice candies from pushcarts—soon snowballed into a runaway hit. With three employees, six tricycles, and 15 pushcarts, Arun Ice Creams was off to a cool start, targeting the ever-hungry college crowds. Chandramogan’s plan was simple but effective, and by the end of its first year, Arun had scooped up ₹1.5 lakhs in revenue. The small factory buzzed with activity, churning out 10,000 candies a day, and soon expanded to serve ship chandlers, providing supplies to vessels. By 1981, the brand’s success was undeniable, clocking ₹4.25 lakhs in sales.

But Chandramogan wasn’t one to rest on his laurels. While other small-scale ice cream ventures—around 4,000 of them—struggled to stay afloat, Arun Ice Creams set itself apart. Chandramogan’s genius lay in his unconventional approach. Instead of expensive cold storage and distribution, he packed ice creams with rice and sent them by train, cutting costs and reaching rural ice cream parlours faster. This clever strategy helped Arun Ice Creams dominate the market, and by 1985, it had become Tamil Nadu’s largest ice cream seller by volume. The recipe for success? Ingenuity, grit, and a frozen dream that melted the competition.

Targeting Untapped Markets: Chandramohan's Visionary Strategy

Chandramohan had an eye for opportunities where others saw obstacles. He turned his focus to overlooked markets that prominent brands deemed too small or insignificant. By supplying ice cream to college students—who were always eager to experiment with new flavours—he ensured that product quality remained high and the supply steady. The response was overwhelmingly positive. He didn’t stop there; recognizing the potential in ship chandlers, he meticulously studied their packaging and delivery needs, successfully capturing that market as well. By 1974, Arun Ice Creams had become a household name, dominating nearly 95% of college canteens and ship chandlers.

Another clever move was Chandramohan’s foray into rural markets. He branded Arun Ice Creams as "Fresh Ice Cream from Madras," which sparked excitement among rural consumers who had never been targeted before. This refreshing approach broke through the barriers of perception, introducing a taste of the city to those living in the countryside. It wasn’t until the late 1980s that Arun Ice Creams made its mark in Chennai.

Chandramohan further expanded his reach by supplying ice creams packed in dry ice to educational institutions—canteens and hostels at the district level—while leveraging Indian Railways for transport whenever possible. Instead of rushing into Chennai, he focused on Tier 2 and Tier 3 towns like Puducherry, Madurai, and Sivakasi. By 1995, Arun Ice Creams had spread its wings into Kerala and Andhra Pradesh, establishing itself as the largest ice cream brand in South India with 700 outlets. Chandramohan also diversified into liquid milk marketing with Arokya. By 2001, Arun Ice Creams and Arokya had together become a ₹100 crore business, a testament to Chandramohan’s strategic foresight and relentless pursuit of growth.

Marketing Masterstroke: Chandramohan's Blueprint for Ice Cream Empire

As Arun Ice Creams expanded, RG Chandramohan recognized that marrying his business instincts with formal marketing strategies would propel his brand. He studied marketing and personnel management, enhancing his industry knowledge. He started supplying ice cream for social events like weddings, winning over families across Tamil Nadu.

One groundbreaking initiative was a unique booking system, allowing customers to reserve ice cream through hoardings and pick it up on specific dates. This idea sparked immense community interest.

Chandramohan pioneered the exclusive ice cream parlour concept in India. Initially unable to provide freezers to retailers, he partnered with an entrepreneur in 1981 who opened a dedicated outlet for Arun Ice Creams, complete with its own freezer. This collaboration birthed a welcoming parlour environment where customers could enjoy their favourite treats.

The franchise model quickly expanded across Tamil Nadu and into neighbouring states, with franchisees so loyal that some named their children ‘Arun’ in the brand's honour. By 1985, Arun Ice Creams led the market in Tamil Nadu, and by 1999, it boasted around 700 outlets across Tamil Nadu, Karnataka, Kerala, and Andhra Pradesh.

In the 1990s, Arun Ice Creams surpassed a ₹3 crore turnover. While other regional brands struggled against Hindustan Unilever, Arun Ice Creams thrived, introducing refrigerated vehicles for efficient transportation and establishing a new depot near Madurai for quick delivery.

In 1986, recognizing the need for quality milk in ice cream production, Chandramohan entered the dairy business, creating a direct supply chain by sourcing milk from local farmers. This initiative led to the formation of Hatsun Foods Pvt. Ltd., later evolving into Hatsun Agro Product Ltd. While ice cream sales dipped in the early 2000s, a revival came in 2007 with the launch of ‘Arun Ice Cream Unlimited’ parlours, offering generous scoops and showcasing other Hatsun products.

Today, Hatsun stands as the largest private sector dairy company in India, with about 10,500 Hatsun ‘Milk Banks’ in 12,000 villages. With over three lakh farmers supplying milk, Hatsun operates 14 plants across South India, processing 18-20 lakh litres of milk daily, 60,000 litres of which go to ice cream production.

Though ice cream sales now represent only 10 percent of Hatsun’s ₹4,200 crore revenue, the name ‘Arun’ remains synonymous with ice cream delight, a testament to Chandramohan's visionary leadership and innovative marketing strategies.

A Flavorful Adventure

Chandramohan made sure Arun Ice Creams stayed ahead of the game by diving into the latest tech. With top-notch equipment for cone and chocolate making, along with a solid production line and cold storage that keeps ice cream fresh for up to 10 days, quality is always on point.

To keep things exciting and delicious, he brought in ice cream experts and savvy managers who keep the creativity flowing. That’s how Arun Ice Creams has become famous for its fun and unique flavours—think traditional Indian sweets with a twist! 

Thanks to a tight grip on milk sourcing, Arun Ice Creams boasts a creamy delight with a minimum fat content of 12 percent—way above the norm.

With over 2,300 parlours in Tamil Nadu, Karnataka, and Andhra Pradesh, Arun is now making waves in Maharashtra and Orissa. They’ve even spread their deliciousness overseas, holding 70 percent of the market in Seychelles and landing in the top five in Brunei.

As Arun Ice Cream continues to shake things up while staying true to its roots, every scoop is a celebration of flavour, creativity, and pure joy!