Cadbury to set up chocolate manufacturing facility in India

Chocolate manufacturer Cadbury India, a part of US-based Mondelez International, has announced plans to invest Rs10bn ($163m) to establish a manufacturing facility in Sri City business hub, Andhra Pradesh.

This development is part of the company’s aggressive growth plans to expand its presence into other categories in India.

Cadbury stated that the multi-category food facility will be the largest chocolate manufacturing plant in India and Mondelez International’s largest manufacturing facility in the Asia Pacific region.

While the project will be developed in four phases, the first phase is expected to be completed by mid-2015 with final completion by 2020, the company said.

The facility is expected to create about to 1,600 new jobs by 2020.

Commenting on the development, Mondelez International India and South Asia president Anand Kripalu said that India is one of the priority emerging markets for Mondelez International and the investment will build on the company’s success in the country and ensure long-term business sustainability.

"As leaders in the chocolate category in India and with aggressive growth plans for other categories, it heralds our commitment and intention for this market," Kripalu added.

For the new facility, Cadbury India has signed a deal with Sri City to lease 134 acres of land.

Sri City is a planned integrated business city featuring domestic tariff zones, special economic zones, and free trade and warehousing zones on the Andhra Pradesh border. It houses more than 90 industrial units from 25 countries.

Currently, Cadbury operates five manufacturing plants in the states of Himachal Pradesh, Maharashtra, Karnataka, Madhya Pradesh and Andhra Pradesh.

In 2010, US-based Kraft Foods acquired Cadbury as part of its efforts to expand in emerging markets.

In October 2012, Kraft Foods spun off its snacks and confections business to a new company called Mondelez International and spun off its North American grocery business into a new company called Kraft Foods.

Mondelez International is a leading manufacturer of chocolate, biscuits, gum, candy, coffee and powdered beverages under brands such as Cadbury, Milka chocolate, Nabisco, Oreo biscuits, and Trident gum.

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Image: Cadbury stated that the multi-category food facility will be the largest chocolate manufacturing plant in India. Photo courtesy of Evan-Amos.