North America's confectionery major Hershey Company on Tuesday agreed to form a joint venture with Godrej Beverages and Foods Ltd, in which it would acquire 51 per cent stake, to manufacture and distribute confectionery and beverages in India.
Hershey's plans to raise its India presence and introduce some of its global brands, beside looking at more manufacturing facilities here.
Chocolate and confectionery maker, The Hershey Company, is finally set to enter the Indian market by acquiring the stakes in Mumbai-based Godrej Beverages and Foods.
But the company will have to differentiate itself in a market that has well-entrenched players.
The group's much-touted acquisitions in recent years follow a series of disappointments in joint ventures.
Most business groups in India, including Godrejs, Tatas and Mahindras, have seen patience tested in JVs, with some of them winding up quickly
Chocolate majors in India posted healthy top-line growth in FY19. While Mondelez India Foods - the marketer of Cadbury - continued to lead the pack, Nestle India, which dominates the confectionery space with leading brands like Kitkat and Munch, continues to hold the third spot in revenue. However, two of these companies - Mars International India and Hershey India - still remain in the red.
