To guarantee that its chocolates and cookies reach more homes, Mondelez India plans to invest 4,000 crore over four years in expanding its manufacturing capacity and constructing more warehouses and cold-chain facilities. The investment will not include brand and advertising expenses, but will focus on increasing capacity, expanding reach, and meeting growing demand for their products. This investment is part of Mondelez’s strategic move to significantly accelerate its investments in India, which it considers a key market. According to reports, India accounts for about $1.4 billion of revenue for parent Mondelez, with the local unit controlling nearly two-thirds of the country’s chocolate market.
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Mondelez India Background
The Indian division of Mondelez International, Inc., a multinational food and beverage corporation that manufactures and sells well-known brands including Cadbury, Oreo, Toblerone, and Milka, is called Mondelez India. After Kraft Foods, which had bought Cadbury in 2010, separated into Kraft Foods Group and Mondelez International, Mondelez India was founded in 2010.
The headquarters of Mondelez India is in Mumbai, and the company has production facilities around the country. The firm manufactures and sells a broad variety of goods, such as drinks, gum, candies, and chocolates. Due to its commitment to sustainability, Mondelez India has started a number of programmes to lessen its influence on the environment, such as cutting back on waste, water use, and greenhouse gas emissions.
Investment Plan
The investment plan includes the construction of new manufacturing units and warehouses as well as expansion of existing facilities. Mondelez India aims to increase its production capacity in the country and make its products available to a larger customer base.
The company also plans to set up more cold-chain facilities to store and transport its products in a temperature-controlled environment, which will help maintain their freshness.
Mondelez India is known for popular brands such as Cadbury Dairy Milk, 5 Star, Gems, and Oreo biscuits. The company reported a revenue of ₹7,706 crore in the 2019-20 financial year.
The investment is expected to create job opportunities and contribute to the growth of the Indian economy.
Post Investment Benefits
Increased production capacity: With an infusion of new funds, Mondelez India may be able to invest in its manufacturing facilities, resulting in increased production capacity. This could enable the company to meet growing demand for its products, launch new products, and potentially expand into new markets.
Innovation: Investment may allow Mondelez India to invest in research and development to create new products or improve existing products. It could enable the company to innovate and stay ahead of competitors in a competitive market.
Improved distribution: Investment could enable Mondelez India to expand its distribution network and improve its supply chain, resulting in greater efficiency and more timely deliveries.
Talent acquisition and development: With additional funding, Mondelez India could invest in talent acquisition and development to grow its workforce and strengthen its position in the market.
Increased profitability: If the investment helps Mondelez India achieve any of the above benefits, it could result in increased profitability for the company, potentially benefiting shareholders and other stakeholders.
The investment will primarily go towards the development of four additional production lines, which will increase the company’s production capacity by roughly 30%, and generate additional jobs in the local area. The move is part of Mondelez’s broader push to bolster its capabilities in one of the world’s fastest-growing consumer markets.
