Italian chocolate group Ferrero has indicated it could double its investment in the Indian market in order to increase penetration, production and innovation.
“We have invested INR8bn (US$119.7m) in India and we are optimistic about doubling this investment in the future. As you know the Indian consumption of chocolates is growing every year. We expect this trend to continue,” a Ferrero spokesperson told just-food. “We are a leading player in India and we want to continue to meet our consumers’ needs and expectations.”
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Ferrero did not respond to questions on the time-frame over which it had invested INR8bn and declined to comment on the timetable for the potential doubling of investment.
The company did say its investment approach will include product development specifically targeting the Indian market. “We will be focusing on new products in the tropical portfolio,” the spokesperson revealed. “We are continuously introducing new innovative products to cater to the Indian palette. Recently we launched the Kinder Schoko-Bons Crispy in India which is a unique treat for the entire family.”
Ferrero is also expanding its production and distribution network. “We will be increasing local production to meet the growing demand from consumers in India,” the spokesperson noted. “India is a large country. We are strengthening our sales and distribution channels for better penetration.”
Last year, Ferrero confirmed it is expanding production at its Baramati plant for local distribution as well as for exports to China, the Middle East and South East Asia. The company entered the Indian market in 2008.
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By GlobalDataCompetition in the Indian confectionery sector has been intensifying, with global food majors expanding their offering of chocolate products in the market. In an interview with just-food this week, Nestle India MD Suresh Narayanan revealed the company is launching an upmarket brand of chocolate, Alpino, in the market. Meanwhile, at the end of last month, Mondelez International launched premium brand Cadbury Fuse in the country.
