Mondelez International is set to invest in Rs16bn ($195.3m) in its manufacturing facility in southern India to increase production capacity.

The Oreo and Cadbury’s Dairy Milk owner is expanding the capacity of its plant in Sri City in the state of Andhra Pradesh.

In a statement, the confectionery giant said it was investing to create “new chocolate capacity to meet the rising demand in India”.

The investment will add capacity over the next three years, Mondelez said. The company added the site will become one of its largest chocolate production plants globally.

Venkat Venepally, vice president of supply chain at Mondelez India, said: “With a 75-year history in India, the company is proud to continue investing in the country given our growth. Our Sri City manufacturing plant has been a critical site and we are delighted to continue investing to expand our capacity and footprint in the state of Andhra Pradesh.”

Just Food has contacted Mondelez, who has been present in India for over 75 years, for more details about the expansion plan and how many jobs will be created.

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According to the Oreo owner, Mondelez accounts for over 65% of India’s chocolate category, with Cadbury Dairy Milk holding a market share of over 40%. Mondelez employs over 3,500 people in India and operates four manufacturing facilities, including the largest one in Sri City.

When Mondelez announced its company-wide Q1 results in May, CEO Dirk Van de Put was optimistic about the company’s prospects in India.

“India keeps on growing at a very accelerated pace, strong double-digit, no real signs of a slowdown,” he said. “Our outlook for 2023 remains optimistic and we have to invest in capacity increases, which we are doing. It’s a combination of the strength of our Cadbury and Oreo franchises, who are receiving heavy support with strong innovations and, as well, a distribution expansion, where we still have a runway for several years to go.”

Earlier this month, Nestlé confirmed that it was set to build a new food processing unit in eastern India at a cost of Rs8.94bn, based in the district of Khorda in Odisha.