Mondelez to invest Rs 4,000 cr in India in next 3 years: Report | Mondelez International
Mondelez India is set to invest Rs 4,000 crore in the next three years to meet the growing demand for its products, reported Business Standard.
The company will make investments in manufacturing to expand its reach. The company is also planning to add logistics associated with factories, add capacity at existing factories and augment its route-to-market that also includes investment in cold chain to reach rural markets.
The investment is at a time when the demand for packaged foods goes upward despite an impact by high inflation that is hitting the household budgets.
Focus on manufacturing
Deepak Iyer, managing director at Mondelez India in an interview with Business Standard said that the company is seeing a healthy volume growth trajectory and India will remain its priority. He also added that the company will continue to accelerate the investments for the business in the country.
According to Iyer a bulk of the investments will be focused on manufacturing.
The maker of Cadbury Dairy Milk chocolates signed a memorandum of understanding with the Andhra Pradesh government to pump in close to Rs 1,600 crore in the next three years. The company also plans to continue its other investments in its brand, media and advertising.
This comes after the company invested approximately Rs 1,500 crore in the last three years.
Iyer said that most of the expansion would be in the rural markets. The company’s rural reach has grown in the last five years with the oreo maker supplying directly to over 2,00,000 villages.
The chocolate maker has seen a growth across all three divisions of chocolates, baked snacks and biscuits even during the pandemic.
In its global call the company said that it witnessed double-digit growth in the country in the last quarter on the back of biscuits and chocolates. Additionally, Dirk Van de Put, the chief executive officer told investors that Silk premium chocolates has doubled its penetration in India in comparison to the previous year.
<!– Published on: Wednesday, March 22, 2023, 02:23 PM IST –>