The integration process of Cadbury and Kraft in synergising distribution channels is on

Cadbury India on Thursday said it would start manufacturing of parent Kraft Foods' orange drink Tang, while it would also embark on a capacity expansion for its confectionery products.

“We will start local manufacturing of Tang in India. We are rejuvenating it and we will start producing it within this fiscal,” Cadbury India Managing Director Anand Kripalu told reporters here on the sidelines of an event.

He said Tang, which had been imported from Thailand to serve the Indian market so far, would be produced at the Kraft's Hyderabad plant.

“It is a legacy plant of Kraft in Hyderabad, which has not been utilised. We will start manufacturing there,” he said.

Cadbury India came under the Kraft Foods fold after the U.S.-based firm acquired British candy maker Cadbury for $19.6 billion in January.

Asked if Cadbury India would be selling more products from the Kraft portfolio, Mr. Kripalu said: “As of now we are still focussing on our core confectionery business.”

He, however, said the integration process was still going on in terms of synergising distribution channels of Cadbury and Kraft in India.

Commenting on the overall plans of Cadbury India, he said: “Capacity is a challenge for us, as we look to drive up volumes. We need to expand it and we will be doing it significantly.”

He said the expansions would take place at the company's existing six facilities in India but declined to share details such as investments and envisaged additional output.

Cadbury sells chocolate brands, including Cadbury Dairy Milk, 5 Star and Perk, along with snacks Cadbury Bytes and health drink Bournvita in India.

Keywords: CadburyTangKraft Foods

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