The local arm of Mars Wrigley, the world’s leading chocolate, mint, gum and confectionery company, is set to double its business in India over the next 4-5 years, a top company official said. While the American firm’s Snickers and Galaxy chocolates are popular in India, it is also pushing for local innovation to expand its footprint.
“We are focused on having the talent and capacity to be ready for growth in 2025-2026 because by then the business will be a little closer to double where we are. We should be able to double every 4-5 years, but we need to be ready by 2025-26 to be ready for that growth.
That’s what management focuses a lot on – to meet demand. So the lines have to be ready, the products have to be ready, the talent has to be there,” Kalpesh Parmar, country general manager, Mars Wrigley India, said in an interview during a visit to the company’s chocolate factory in Pune.
On Monday, Mars Wrigley launched a locally produced dark chocolate variant of Galaxy Fusions in India. Although India’s ₹27,000 crore chocolate and confectionery market is dominated by the likes of Mondelez, Nestlé, ITC and Amul, it started manufacturing its flagship Snickers brand locally in 2016, followed by Galaxy chocolates in October 2021 at the fair Pune plant.
Mars Wrigley has so far invested over ₹1,000 crore in its three factories in India
The growing business will also translate into increased investment in the future – particularly in expanding the distribution network and capacity, he said. Currently, the company imports Mars and Twix and Skittles and M&Ms, but packages them in India.
“The growth has been great in recent years. We are in the process of completing (the investment), but we have to increase our capacity every five years, probably for the next 20 years,” he added.
Mars Wrigley will invest heavily in capacity expansion in the Pune and Baddi blocks. “Our portfolio is growing well. We have spare capacity in Bengaluru, but we need to look at expanding facilities in Baddi and Pune over the next two to three years.” At its Bengaluru and Baddi units, the company manufactures Doublemint, Orbit, Boomer, Skittles, Solano and Pim Pom lollipops.
Globally, the company owns a large pet care business that sells the Pedigree and Royal Canin brands. Its core portfolio in India includes Snickers, Galaxy and Boomer. “Between Snickers and Galaxy, we’re going to have a big chocolate business going forward,” he said. While Mars Wrigley’s business in India is still small, it was one of the fastest growing markets for the company globally in 2022. to expand its business comes amid rising demand for packaged foods in post-pandemic India as consumer demand for a variety of ready-to-eat foods increases. However, despite strong demand, companies face inflationary headwinds.
“Inflationary pressures are being felt globally and we have made some price adjustments, but we will always offer high-quality delicacies at the best possible value for money and we will double down on that commitment,” Parmar added. Meanwhile, commenting on business in India, Parmar said domestic demand will be strong over the next decade.
“We see a long-term trajectory (in India), we don’t see any concerns. I think it’s about making sure we have the inventory, building our factories, increasing capacity to serve that growth,” he added.
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