Sep 29, 2018
US-based chocolate maker Mars, which has brands such as Snickers, Mars, Bounty, M&M, Double Mint, Boomer, Orbit, Galaxy and Twix in India views India as a key ‘accelerate’ market and is upgrading its distribution network in the country to tap the high growth potential.
The company is investing to strengthen its distribution network and is building a sustainable supply chain here to expand its reach beyond metros and some key cities. The company has “stronger growth ambitions” and is taking “a long term view” on the Indian market.
Last year, Mars Inc integrated its Mars Chocolate and Wrigley segments in India, creating Mars Wrigley Confectionery (MWC) to tap high growth potential here. Mars has manufacturing plants in Pune, Baddi (Himachal Pradesh), Hyderabad and Bengaluru and has plans to expand capacity when the demand increases.
Presently, Mars Wrigley products are distributed through around 3, 00,000 outlets and it is eyeing to take the number to over 5, 00,000. Also the company plans to introduce one more brand in the next six to eight weeks to enhance its presence here.
Mars Wrigley Confectionery General Manager – India , Andrew Leakey, said “”With our continued focus on growth in the India market through our expanding distribution network, flexibility to scale as per demand, ongoing efforts to build sustainable supply chain and strong market potential, we anticipate one-fourth of our growth contribution for AMEA region, coming from India, over the next few years.
The company has an innovation centre in Bengaluru which is helping it to localize some of the flavours here.
Confectionary market is growing with CAGR of 9 per cent in last 5 years and we are growing double than that. To expand its reach in the mass market, Mars has introduced a small Rs. 10 pack of Snickers as in India around 80 per cent chocolates are sold in the Rs 10 price segment.