Confectionary major Candico on Wednesday announced acquisition of a plant in Tanzania and unveiled its plans to set up a major plant in Johannesburg at an investment of $ 5 million as a part of the company's strategy to enter global market.
"We have invested $ 1 million in the Tanzania plant and upgraded its capacity to 3900 tonnes from 1800 tonnes per annum. The Johannesburg plant, to be set up within a year, will cater to seven countries in the South African region," Karan Gupta, executive director, Candico said announcing the company's expansion strategy.
The Rs 125 crore (Rs 1.25 billion) company expects to generate 50 per cent revenue from its overseas projects in the next five years, he said, adding Candico is scouting for joint venture partners in North and West Africa.
Asked if Candico's strategy was Africa-specific, he said "Our phase I strategy is third world specific and since the multi-national company penetration in these regions is very low, we can steadily gain a firm foothold in these markets before moving further."
Candico is also chalking out plans for distribution agreements in South Asia and Middle East. "These markets are flooded with Pakistani products and we have shortlisted companies to strike agreements.Our first container should leave for Middle East by the end of this fiscal," he added.
In the MNC-dominated Rs 1500 crore (Rs 15 billion) Indian confectionary industry, Candico enjoys an eight per cent share and has 13 brands, including Loco Pco, Koffi Toffi, Gumbo Jumbo and Gol Maal, in the market.