Feb 25, 2020
ITC is all set to have a dominant share in the India’s ₹11,000 crore chocolate market. The company is riding high on the ‘big’ success of it’s chocolate business, similar to what it had already seen in categories such as atta, noodles and biscuits.
ITC did proper due diligence and study of the market before debuting, with Fabelle. “Our view in the near term is to have a dominant market share, similar to what ITC has achieved in many food categories,”’explained Anuj Rustagi, chief operating officer — Chocolates, Coffee and New Categories — Food Division, ITC Ltd.
According to Mr. Rustagi, a market analysis identified a set of consumers who look at chocolates for self-indulgence, while some may look at it as a gifting or a snacking option.
The company had initially invested ₹100 crore to set up a greenfield chocolate manufacturing facility in Haridwar with a capacity of 5,000 tonnes per annum. In addition to this, another factory was opened in Bengaluru exclusively for making luxury chocolates.
The company has also invested in the global cooling technologies and real-time digital monitoring systems to ensure the cold chain remained efficient without downtime.
To ensure supply of prime-quality cocoa, ITC has roped in top global cocoa suppliers from Ghana, the Ivory Coast, Venezuela, Madagascar and India. It has plans to work with cocoa farmers directly in future.
In fact chocolate connoisseurs in the country had been appreciative of chocolate from ITC. The overwhelming response we received, after launching Ruby Gianduja in the luxury segment, prompted ITC to extend the experience of Ruby Chocolate to the larger consumer base and hence the launch of Fabelle Choco Deck Milk and Ruby Chocolate varieties.
India’s chocolate market is pegged at ₹11,000 crore, of which premium chocolates can be sized anywhere between 10% and 15%.