After around eight years of starting its India operations, Italian chocolate maker Ferrero has posted revenues of Rs 929 crore from September to March 2015. It was from August 2014 that the Kinder Joy maker had changed its accounting year. These profits have left behind Nestle's chocolate division, which posted revenue of Rs 1,110 crore from January to December 2015.
On the other hand, Mondelez, which sells Cadbury chocolates and leads the chocolate segment, has annual revenues of over Rs 6,500 core.
Three years ago, Nestle's chocolate business in the country had three times more revenue than
As per experts, it was because of diversification offered by Ferrero that this feat was possible to achieve. "Brands like Ferrero with no historic baggage has discovered and led the top down approach of premiumising through innovation versus old school thinking of focusing mainly on low priced products. Ferrero has shown that there is a large markeven at the top end," Devendra Chawla, president - FMCG and Brands at Future Group, told ET.
Another reason behind Ferrero’s success could be the huge amounts that it has invested or plans to invest in the country’s chocolate segment. As per latest regulatory filings, it will be investing Rs 375 crore here, while doubling its authorised capital to Rs 1500 crore.
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