Hershey today (7 September) announced a deal to take full control of its Indian venture, which has been the subject of speculation for months.

The US confectioner will buy a 49% stake in the loss-making venture held by Indian conglomerate Godrej Industries and other smaller shareholders.

The venture, which will be renamed Hershey India, owns the Maha Lacto and Nutrine confectionery brands. Its sales in 2011 were US$80m. Hershey said its portion of the venture’s loss last year was $7m.

The Godrej Hershey venture, formed in 2007, had been the subject of speculation in India in recent months. Reports in India had claimed Hershey is looking to sell its 51% stake in the business. However, a report in June said Hershey wanted to operate independently in India.

Last month, Godrej Industries admitted it could sell its stake in Godrej Hershey, a business it described as “potentially sick”.

“India is a key focus market for The Hershey Company,” president and CEO J.P. Bilbrey said. “We have a great deal of respect for Godrej. Our partnership provided us with insights and an understanding of the consumers and customers in India. confectionery and beverage category growth in India is solid and we’re excited about our opportunities. We’ll make the necessary investments in India to accelerate growth, leveraging our core strengths and business model.”

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.