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Amul India plans to rejig its chocolate portfolio. On the cards is focus on larger bars of over 100 grams to shore up topline and ramping up of chocolate production capacity at Anand.
Currently chocolates account for less than two per cent of the group's Rs 12,000-crore turnover.
According to Mr Jayen S Mehta, General Manager of Gujarat Co-operative Milk Marketing Federation Ltd (GCMMF), the smaller packs targeted at the price-sensitive mass market are found “unviable” in the existing market conditions. Priced between Rs 5 and Rs 20 such packs are witnessing constant reduction in grammage to accommodate the rising input cost.
“The small bar segment is no more competitive. We will be following the international trends (for selling larger bars),” he said adding that the company would, however, maintain a presence in the segment. Amul enjoys 8 to 10 per cent share in the Rs 1,500 crore chocolates market in India.
Though he did not divulge investment details, Mr. Mehta said would ramp up production at Anand. The unit, at present, has a capacity to produce 20 tonnes of chocolate a day. In addition part of its requirement is also sourced from Campco Ltd — a joint venture between the State governments of Karnataka and Kerala.
“We would look to shore-up our chocolate production capacities in the next six to 12 months. But before that we have to prepare the market for it,” he said on the sidelines of the launch of Amul's chocolate-based malt beverage, Amul Pro, here on Thursday.
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