Mondelez India to focus on select brands
The so-called power brandsa set of 12 productsare typically fast growing and the most profitable brands
Mumbai: Mondelez India Foods Ltd said it is focusing on its so-called power brands—a set of 12 products—to drive sales in the country, and hopes to leverage its upcoming manufacturing facility for this.
“We have today what we call our power brands, and those are typically fast growing and are our most profitable brands,” said Irene Rosenfeld, chairman and CEO, Mondelez International.
The 12 power brands in India are Cadbury Dairy Milk, Cadbury Dairy Milk Silk, Bournvita, 5 Star, Perk, Bournville, Celebrations, Halls, Choclairs, Tang, Oreo and Gems.
The company is expected to set up a 250,000 tonne factory in Sri City, Andhra Pradesh, which will initially manufacture only chocolates and will later be used to manufacture other product categories as well.
The first phase of the facility is expected to be completed by fourth quarter of next year. The plant can also extend to be a manufacturing hub for nearby Asian markets, said Rosenfeld.
Contribution of sales from India in the total sales will get better as India is outgrowing the overall corporate growth of Mondelez, said Manu Anand, managing director.
Rosenfeld said the firm will not look to bring any new product categories like Kraft Cheese to India. “We have a clear road map on the categories and brands we have so far and that’ll keep us busy for the next couple of years,” said Rosenfeld. She added that the company also sees opportunity for localizing products in India. For instance, the cookie, Oreo with orange flavour was made only for India.
“The per capita consumption of chocolates in India is low and there is significant potential for growth,” said Gaurav Gupta, senior director, retail, at Deloitte, a consultancy.
The chocolate and confectionary market is roughly a ₹ 15,000 crore segment, according to an analyst, who did not want to be named.
Rosenfeld, who led World’s number two food company Kraft since 2006, was behind the hostile acquisition of Cadbury in 2010 for $19 billion in a bid to expand to emerging markets.
The company early this month transitioned to a new global operating model, where it has a regional, category-led approach that focuses on the key categories, which include chocolates; gum, candy and powdered beverages; biscuits; and cheese and grocery. In this model, the regional category heads would be given full profit and loss responsibility.
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First Published:23 Aug 2014, 12:22 AM IST
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