It has adopted a two-pronged strategy and plans to focus on both premium and entry-level segments of the market. In India, majority of the packs of chocolates that are sold are priced at Rs 10 or below and Iyer does not want to miss out on that.
Its premium portfolio is, however, what delivers it the margins. In line with the industry trend, Mondelez has ramped up premium play – launching close to half a dozen products in the category. Nestlé, Fererro and Hershey have all introduced global premium offerings in the market in the last 18 months. ITC, too, forayed into the chocolate market with its luxury range of Fabellle brand.
Mondelez’s efforts have paid off so far. Data from Registrar of Companies, in FY19, show its operating revenue grew 9 per cent to Rs 6,746 crore, while its net profit grew 42 per cent to Rs 462 crore year-on-year – expanding its net margin by 160 basis points.
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