Kwak Yeon-soo is a digital editor at The Korea Times creating, editing and curating digital content for the newspaper’s website, mobile app and social media. She previously covered a diverse array of cultural, political and business topics.
Orion enters India's snack foods market
Orion Vice Chairman Huh In-cheol, left, shakes hands with Mann Ventures Founder Sukhbir Singh Mann, Wednesday, at a groundbreaking ceremony for a manufacturing plant which Orion will establish by the first half of 2022 in Rajasthan, India. / Courtesy of Orion
By Kwak Yeon-soo
By Kwak Yeon-soo
Orion has buckled down to make inroads into India's fast growing snack foods market in cooperation with local partner Mann Ventures, aiming to boost its global presence, the firm said Thursday.
The Korean confectionery company held a groundbreaking ceremony the previous day to build a manufacturing plant on land owned by Mann Ventures in Rajasthan, India.
Founded in 1989, Mann Ventures is India's leading processed food manufacturer that offers manufacturing and packing services to multinational companies.
Orion said it will oversee sales, marketing and distribution in India, while its local partner will focus on production management.
This is its first large-scale production facility operated in collaboration with an Indian food manufacturer.
The company said it plans to complete construction of the factory by the first half of 2022 and start mass-production thereafter. The factory is being built on a 17,000 square-meter site.
“Orion has taken a long time to come up with an actionable strategy in India,” Vice Chairman Huh In-cheol said. “We will make every effort to expand our presence in India and take a leadership role in the global confectionery market.”
The firm set up its Indian subsidiary Orion Nutritionals in October, selecting Mann Ventures as its original equipment manufacturer.
In April, Orion plans to recruit a local sales executive as COO to plan operations in India.
The company will initially market its signature product Choco Pies, snacks and biscuits across north-west India, where Rajasthan is located.
India's snack-food market is estimated to be worth 11 trillion won ($9.8 billion), and is expected to see annual growth of 10 percent on average for the next five years.
The growth is likely be driven by a growing population, vast land area and an increased desire for a wide range of packaged foods, the company predicted.
Orion posted 1.9 trillion won in sales and a 282 billion won operating profit last year.
More than 60 percent of Orion's sales come from overseas ― by country, China accounted for 48.4 percent of sales, followed by Vietnam with 12.1 percent and Russia with 3.4 percent. Domestic sales accounted for 35.9 percent.
The biggest contributors to its overseas sales were Choco Pies and potato chips.