7 November 2007 - Italian confectionery giant Ferrero, via subsidiary Imsofer Manufacturing India Pvt Ltd, plans to establish a new production facility near Indapur in Maharashtra, India.
According to local press reports, Ferrero will start work on the new plant in mid-2008 with a view to begin manufacturing operations in mid-2009. By 2011, the facility is expected to have a workforce of 500.
The initial cost of the project is estimated at Rs 140 crore (approximately USD 35 million).
The reports go on to say that Ferrero will start by manufacturing mouth fresheners, such as its “Tic Tac” range, rather than its premium chocolates.
Meanwhile, production has already started on a small scale at a leased facility located in Baramati, near Pune.
Ferrero will be entering a booming confectionery industry.
An article published on FLEXNEWS last month, citing a Euromonitor study, says that the Indian sugar confectionery market is projected to expand at a compound annual growth rate of 8% until 2011. The study added that the Indian candy market is currently valued at around USD 664 million, with about 70%, or USD 461 million, in sugar confectionery and the remaining 30%, or USD 203 million, in chocolate confectionery.