AP Fac­tory to be Mon­delez’s Hub for In­dia, Other Mar­kets

The tech­nol­ogy we are putting up in our Sri City fac­tory is one of the first ‘Lines of Fu­ture’

The Economic Times - - Business Of Brands -

Mon­delez In­ter­na­tional plans to make In­dia one of its global pro­duc­tion hubs, says Daniel My­ers, vice pres­i­dent for in­te­grated sup­ply chain. In an in­ter­view to Neha Tyagi, My­ers says In­dia is one of the crit­i­cal mar­kets for the com­pany that sells Cad­bury Dairy Milk choco­lates and Oreo bis­cuits. Edited ex­cerpts:

Post Nes­tle’s Maggi cri­sis, what have you learnt about the In­dian mar­ket? One of the strengths of our com­pany from a her­itage point of view has been safety. And we have a whole sep­a­rate group that au­dits our fa­cil­i­ties. We work closely with govern­ments, part­ner­ing with them to de­velop food and drug ad­min­is­tra­tion guide­lines.

Sev­eral global com­pa­nies find the state of in­fras­truc­ture in In­dia a huge road­block to growth... From the time I have started work­ing in In­dia, the in­fras­truc­ture has im­proved. We are in­vest­ing clearly to have more world class man­u­fac­tur­ing across In­dia. We have in­vested al­most $200 mil­lion in our Sri City (Andhra Pradesh) fac­tory. In ad­di­tion, in the last three years, we’ve spent well over a $100 mil­lion in our ex­ist­ing fa­cil­i­ties. So, it’s im­por­tant to us that we part­ner with the In­dian govern­ment. Our man­u­fac­tur­ing lines have com­pet­i­tive ad­van­tage. The tech­nol­ogy that we are putting up in our Sri City fac­tory is one of the first ‘Lines of Fu­ture’ that we have put any­where in the world. We are fo­cus­ing on rein­vent­ing our en­tire man­u­fac­tur­ing net­work.

Does that mean you will stop out­sourc­ing man­u­fac­tur­ing in In­dia? We will con­tinue to use some con­tract man­u­fac­tur­ing. We make most of our prod­ucts in­ter­nally as we de­velop the mar­ket. The plant will ini­tially be mak­ing the Cad­bury choco­lates, and have land to build other cat­e­gories. We ex­pect the site to con­tinue to grow with other cat­e­gories. We also plan to use the site for ex­port as well in the fu­ture — so, it will be a hub not only for In­dia but also for our other mar­kets. Our fo­cus right now is not only build­ing a choco­late op­er­a­tion, but set­ting out also the en­tire sup­ply chain which will aid lo­gis­tics and dis­tri­bu­tion as well as part­ner­ing with our sup­pli­ers to bring them into the Sri City area.

Will the raw ma­te­ri­als be sourced from within In­dia? We source some of our co­coa from In­dia. Our de­mands are so large that we also im­port co­coa from around the world. Ma­jor­ity of our pack­ag­ing is from within In­dia and we are in­vest­ing to grow co­coa pro­duc­tion in In­dia. Ma­jor­ity of our ma­te­ri­als will be lo­cal, es­pe­cially in the pack­ag­ing area, and we are try­ing to max­imise co­coa sup­ply in In­dia. But we still will be im­port­ing some prod­ucts from around the world.

How can your In­dian ex­pe­ri­ence come handy for other mar­kets, es­pe­cially emerg­ing coun­tries? I would say the ta­lent from In­dia is amaz­ing. Across our plants in In­dia, work­force is out­stand­ing whether that is IT, qual­ity con­trol or cost im­prove­ment. Many of our Asia team lead­ers are from In­dia. We just trans­ferred one of our top de­vel­op­ment di­rec­tors, Ar­jun Bhowmik who was ac­tu­ally lead­ing the build­ing of our Sri City Fac­tory, to North Amer­ica to ex­pand our choco­late busi­ness.

Mon­delez is still a choco­late com­pany in In­dia with very lit­tle fo­cus on healthy prod­ucts. When will that change? Clearly, the whole area of health and well­ness is of key pri­or­ity for us… We are in­vest­ing in prod­ucts that are health­ier. We don’t dis­close when we are launch­ing new prod­ucts into In­dia, but it will be our de­sire to bring those prod­ucts over time into In­dia. It is part of our strat­egy to get those health­ier prod­ucts into all of our crit­i­cal mar­kets around the world and clearly In­dia is one of them.

COM­PANY PHOTO

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.