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Sindhu J. Bhattacharya

New Delhi , Nov. 18

WHEN Candico announced plans to go global last month, it set itself apart as the only Indian confectionery firm that has survived the aggressive domestic market and dares to look overseas for growth.

After charting a $6 million investment in two separate joint venture companies in Africa, Candico is now negotiating with potential partners in Nepal, Bangladesh and more African partners for forging similar joint venture companies. It is also looking at two more such ventures in Africa. Also on the anvil are three product launches over the next six months — a gum and two new offerings in candies.

Says the Executive Director, Mr Karan Gupta, "The objective of Candico is to be a global brand. Having consolidated our operations in the domestic market, we are going aggressively for overseas growth — be it through joint ventures, setting up our own manufacturing facilities or expanding distribution reach. After joint ventures in Tanzania and South Africa, we are talking to potential partners in Nepal and Bangladesh and are looking at setting up two more manufacturing facilities in Africa. The Nepal and Bangladesh joint ventures should come through by 2005 end."

While he declined to comment on what kind of total investments Candico has planned over the next few years in expanding its footprint abroad, Mr Gupta did say that in the first phase of `globalisation,' the company was targeting an entry into South Asian countries, Africa and West Asia.

Also, Candico is planning capacity expansion by up to 40 per cent in the Tanzania plant from 3,900 tonnes per annum at present. The Rs 125-crore domestic confectionery company is eyeing up to 15 per cent growth year-on-year, Mr Gupta said, but again declined to divulge the turnover target for this fiscal.

On the facilities the company has set up overseas, he said the Johannesburg plant is Candico's second unit in Africa, since the acquisition of its first overseas plant in Tanzania for $1 million in October last year. The company's global expansion strategy is aimed at generating 50 per cent revenues from international operations in the next five years.

Besides offering its own brands in the international market, the company will also promote the acquired brands' portfolio. The company plans to launch the Candico brand in the markets in which it currently exports, including Dubai, Baharain and Oman in West Asia. Also, while the products will be marketed under a global brand name, the flavours and packaging will be customised for each particular market. Candico has existing joint ventures with leading European vendors for manufacturing quality products: a joint venture with gum-based manufacturer Eurobase of Belgium and the global leader in flavours and fragrances, Curt Georgi of Germany.

Its portfolio comprises 13 brands, including Loco Poco, Koffi Toffi , Gumbo Jumbo, Gol Maal and Time Bomb. Candico claims to sell two billion units of confectionery products every year through a 1,500-strong countrywide distributor network. Its integrated confectionery manufacturing facility in India has a production capacity of 45,000 tonnes.

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