FMCG player Godrej is planning to enter into the chocolate business through its joint venture with U.S.-based Hershey, as a part of their strategy to increase the product offering in the domestic market.
The joint venture, Godrej Hershey sells food and confectionery items in India. While the Indian partner holds 49 per cent stake in the firm and 51 per cent is held by the U.S. company.
“The company (Godrej Hershey) is planning to get into the chocolate business, which is the main business Hershey’s have all over the world,” Godrej Industries Ltd Chairman Adi Godrej said during the company’s latest investor conference call on May 28.
The company said it has already introduced chocolate syrup from Hershey’s portfolio.
The Indian chocolate market is estimated to be valued around Rs 1,500 crore and Cadbury’s, Nestle and Amul are some of the major players.
Hershey’s is a leading American manufacturer of chocolates and sugar confectionery products with a sales revenue of $ 5 billion. It sells premium chocolate brands such as Hershey’s Special Dark, Hershey’s Extra Dark and Cacao Reserve.
In India Godrej Hershey also sells confectionery products under the Nutrine brand and fruit juices under Jumpin besides other products such as Soya Milk.
Godrej, however, didn’t elaborate on when the joint venture would introduce chocolates in India and under which brands.