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Zurich-based chocolate manufacturer Barry Callebaut, which set up its India subsidiary in 2007, is planning to supply its chocolates to domestic fast moving consumer goods (FMCG) companies such as ITC, Britannia and Mother Dairy.
Long-term plansIt said it would be catering to local players as most multinationals have already inked global sourcing contracts for chocolates. It has plans to start manufacturing at its new Ranjangaon plant near Pune. Barry Callebaut makes premium chocolate and cocoa products.
“We are here in India for the long-term, but not in a position to reveal investments in the country,” said Denis Convert, Vice-President, Gourmet Asia Pacific, Barry Callebaut.
Since 2007, Barry Callebaut has been importing and distributing chocolates as a business-to-business player (B2B), catering to bakeries, star-rated hotels, and has also been training chefs in India.
With more than 50 production facilities, Barry Callebaut has annual sales of $5.2 billion. It has private brands such as Cacao Barry and Carma in the B2B segment.
Market leader Mondelez, with a 65 per cent share in the chocolate category in India, already has a sourcing contract with Barry Callebaut’s manufacturing unit in Belgium.
While global players such as Mondelez, Nestle, Mars and Ferrero already have sourcing contracts with Barry Callebaut, the company is not in a position to service them in India. Interestingly, Ferrero continues to import to India, despite having local production in Baramati, Maharashtra.
Business prospectsLocal FMCG players using chocolate in their products are expected to benefit from the Swiss company’s local manufacturing facility. It will be able to produce over 5,000 tonnes of chocolate.
“Companies like Mother Dairy and others are already testing our chocolates for its ice creams. We will be targeting others like Britannia and ITC for their biscuits, and chocolates,” said Rohit Saini, Director - Gourmet Sales, Barry Callebaut.
A new FMCG firm, Global Beverages and Foods, floated by a former managing director of Godrej Consumer Products, is also expected to enter chocolates, and could source from Barry Callebaut.
“New international companies which recently set up base in India, like Indonesian company Inbisco, with brands like Chocki Chocki and Kopiko, are expected to source their chocolates from Barry Callebaut,’’ added Saini.
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