Mondelez International has announced plans to build another Cadbury production plant in India.
The company said the “multi-category food campus”, to be located in Sri City, is set to be the largest chocolate plant in India. It already has five facilities in India, including one in Andhra Pradesh.
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The global snacks giant said the first phase of the facility in the south-eastern state of Andhra Pradesh was set to be completed by the middle of 2015. The project is scheduled to be finished in 2020.
“India is one of the priority emerging markets for Mondelez International,” Anand Kripalu, president of Mondelez’s operations in India and south Asia. “As leaders in the chocolate category in India and with aggressive growth plans for other categories, it heralds our commitment and intention for this market.
Mondelez said the first phase of production will cost INR10bn. It said the site would be its largest plant throughout Asia Pacific.
The company, which also sells Oreo biscuits and Tang powdered beverages in India, saw its total sales in the country increase 20% last year. In the first quarter of this year, Mondelez said its revenues in India grew at a “double-digit” rate. Chocolate sales, it said, were up in the “low double-digits”.
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By GlobalDataHowever, it has warned of capacity “constraints” in chocolate and the new site will help boost production. The company has said demand for chocolate in India is growing over 20%.
