New Delhi: FMCG player Godrej is planning to enter into the chocolate business through its joint venture with US-based Hershey, as a part of their strategy to increase the product offering in the domestic market.
The joint venture, Godrej Hershey sells food and confectionery items in India. While the Indian partner holds 49% stake in the firm and 51% is held by the US company.
“The company (Godrej Hershey) is planning to get into the chocolate business, which is the main business Hershey’s have all over the world,” Godrej Industries Ltd chairman Adi Godrej said during the company’s latest investor conference call on 28 May.
The company said it has already introduced chocolate syrup from Hershey’s portfolio.
The Indian chocolate market is estimated to be valued around Rs1,500 crore and Cadbury’s, Nestle and Amul are some of the major players.
Hershey is a leading American manufacturer of chocolates and sugar confectionery products with a sales revenue of $5 billion. It sells premium chocolate brands such as Hershey’s Special Dark, Hershey’s Extra Dark and Cacao Reserve.
In India Godrej Hershey also sells confectionery products under the Nutrine brand and fruit juices under Jumpin besides other products such as Soya Milk.
Godrej, however, didn’t elaborate on when the JV will introduce chocolates in India and which brands.