US food giant Kraft Foods has remained silent on reports that it is looking to enter the Indian market by buying a stake in a local food firm.
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Citing a “source close to Kraft”, the Economic Times reported that Kraft wants to acquire a stake in an Indian group, as this would speed its entry into the market. If the company were to establish a start-up business in India it could take between two and three years to become operational.
“Ideally, its first choice would be a Mumbai-based biscuit maker and the second choice, some regional brands,” the unnamed source is quoted as saying.
According to reports, Kraft has already appointed key officials to investigate possibilities in the market.
However, Kraft has remained silent on the reports.
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By GlobalData“While we do not comment on rumours or speculation or provide specifics related to possible acquisitions, I can tell you that our strategic plan is predicated on organic growth,” a spokesperson for Kraft told just-food.
Kraft has said that going forward international expansion will be a major growth driver. The company has identified ten geographies, ten brands and five categories — biscuits, chocolate, powdered beverages, coffee and cream cheese — that it will focus on for global expansion.
The company has identified four “growth engines” — China, Russia, Brazil and South East Asia — in addition to six scale markets like Germany, France, the UK, Italy, Spain and Australia that it will target.
Outlining the company’s growth strategy at the Lehman Brothers conference last week, Sanjay Khosla, president of Kraft International, said: “Instead of planting Kraft flags all over the world and trying to be all things to all people, we are now focusing where we can win. We have improved the depth of our international management team; so I believe the best is yet to come.”
