Mondelez International is set to invest around $5m in its Pakistan operations in an effort to source more inputs domestically in the country.

The US confectionery and snacking giant, manufacturer of Cadbury chocolate and Oreo cookies, is aiming to source in Pakistan 50% of all the raw materials it uses for the finished goods it makes in the country.

In a statement sent to Just Food, Mondelez said it previously depended on “73% imported raw materials and out of which we have successfully localised 22% of our raw material sourcing and aim to increase this to 50% by 2025” .

The company defined raw materials as essential ingredients and components used in the production of its various products, including cocoa, dairy ingredients, sugar, flour, nuts and packaging materials.

The group has two manufacturing plants located in Hub, Baluchistan, which will receive the fresh investment.

It added that the investment will go towards “advancing localisation initiatives, including upgrading existing manufacturing facilities to ensure high-quality standards”.

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Mondelez said in its statement: “Due to severe macro-economic pressures and a foreign exchange liquidity crunch in the country, Mondelez Pakistan took proactive steps to mitigate the impact by initiating measures to localise 50% of the materials previously imported, with the exception of imports like cocoa beans, which are not locally harvested.

“Mondelez Pakistan is working on plans to future-proof its business in the country through localisation, prioritising export growth, and cementing its long-term presence in the market. By investing in local capabilities, the company is poised to drive sustainable growth, boost exports and solidify its position as a key player in Pakistan’s economy.”

The company also has a joint venture in the region with Continental Biscuits, the manufacturers of LU biscuits. Mondelez’s Pakistan business exports some products to countries such as Qatar and Saudi Arabia.

Mondelez’s financial results for 2023 showed its Asia, Middle East and Africa markets turned over $7.1bn, up 4.6% on the previous year.

Earlier this month, Mondelez joined forces with Lotus Bakeries to manufacture and sell biscuits in India.

The partnership centres on the Lotus Biscoff brand, which accounted for 54% of Belgium-based Lotus Bakeries’ global annual sales revenue of €1.06bn ($1.14bn) last year.