Korean FMCG firm Orion is showing a strong commitment to the Indian market as it continues to strengthen its foothold by expanding manufacturing capabilities and diversifying product offerings.
Orion began its Indian venture five years ago, initially importing Choco Pie before establishing a greenfield project spanning 2 lakh sq. ft in Bhiwadi, Rajasthan. Recently, the company augmented its capacity by commissioning a new line dedicated to doubling the production of chocolate pie. Saurabh Saith, CEO of Orion India, disclosed investments exceeding Rs. 200 crores in enhancing manufacturing infrastructure, including a 1.5 lakh sq. ft warehouse for finished goods storage.
From initially offering 2 SKUs, Orion has now expanded its portfolio to 40 SKUs, with plans to increase to 60 by the end of the current year. The company’s latest endeavour involves the introduction of “K Snacks,” marking its foray into the Indian market with Korean snacks alongside its established products, Choco Pie and Turtle Chips.
Driven by a vision to differentiate amidst competitive market landscapes, Orion is poised to commence production of its new snack line in early February, with subsequent market launches. With expansion in mind, the company anticipates adding further manufacturing capacity in the second half of the year and exploring new projects in the near future.
While Choco Pie currently dominates its revenue stream, Orion anticipates significant growth in the salty snack’s category following the introduction of its new brand. Approximately 93–94% of the company’s turnover is generated locally in India.
Orion’s expansive reach spans approximately 100,000 stores across 220 cities, with plans to add 30,000 stores in 2024. The company’s revenue distribution is 20% from e-commerce, 30% from modern trade, and 50% from general trade.
Having achieved remarkable growth rates of 250% in 2022 and 72% in 2023, Orion sets ambitious targets for the current year, aiming for a 65% revenue increase in the FMCG sector, primarily focusing on food products.
With a global presence in 70 countries primarily through exports, India stands out as the sixth country in terms of direct manufacturing units, offices, and on-ground employees for Orion, showcasing the country’s significance in its global expansion strategy.