Amid stiff competition from rivals, Mondelez unveils R&D centre in Mumbai

Two years after opening its largest plant in Sri City, Andhra Pradesh, Mondelez on Wednesday unveiled its first research & development (R&D) centre in Thane, near Mumbai. The number two chocolate maker in the world after Mars, has spent $15 million, in addition to $190 million it has already invested, to set up the unit in the facility. The unit will be part of a network of 11 centres coming up across the globe, nine of which are already operational.

The move by Mondelez comes as it faces stiff competition from global peers including Mars, Ferrero, Hershey and Nestle in India — all fighting for a bigger pie of the organised chocolate market.

While Mondelez, through Cadbury, retains leadership in the Rs 85-billion chocolate market (a 65 per cent market share), smaller players such as Ferrero, Mars, Hershey, besides Nestle have been upping the ante, launching new products, making investment commitments and setting up new plants in the country.

Speaking on the competitive activity, Maurizio Brusadelli, executive vice-president and president, Asia, Middle East and Africa (AMEA) region, Mondelez, said, the company would continue to invest in the country, fill key gaps at the premium end of the market, launch products in adjacent categories such as chocolate spreads, gums, candies and beef up its overall portfolio. 

"India remains an important market, and a country where we've been loved for 70 years. We will do what it takes to retain our leadership and close gaps. Despite all the competition, we continue to grow in India and remain bullish about the market," Brusadelli said.

Two weeks ago, Hershey said it was launching its flagship Kisses brand. 

Hershey also indicated that it would make measured investments in India. It has already committed $50 million in the next five years in the country, and is expected to introduce more international chocolate brands.

India is counted among Mondelez's "fast-growing emerging markets", which contributes 40 per cent to the firm's revenue. For the July-September period, Mondelez's global Chief Executive Officer (CEO) Dirk Van de Put had said on Tuesday, that India alongwith China, Russia, Mexico, South East Asia and Africa had added 6 per cent to the revenue.

"In India, recently-launched (Cadbury) Lickables continues to do well with consumers, helping deliver 90 basis points of chocolate share gains year-to-date. AMEA grew 4.6 per cent (during the quarter), with broad-based growth across key areas. India and south east Asia continue to execute well with high and mid-single digit growth (respectively), while China delivered its fifth consecutive quarter of growth fueled by biscuits and e-commerce," Van de Put had said on Tuesday.

The India R&D centre, spread over 12,000 square metres, according to Rob Hargrove, executive vice-president, research, development and quality, Mondelez, will undertake work not only for the Indian market, but also global markets. "Learnings from here can be exported to other emerging markets. The centre is equipped with a pilot plant, a packaging studio and laboratories for R&D to help in this endeavour," he said.