Orkla strengthens presence in India

Norway's Orkla Group, the parent company of MTR Foods, on Tuesday forayed into the Indian market with the launch of a confectionary brand.

The group, which launched 'Laban' -- a non-sticky, 100% vegetarian, fruit-flavoured chewy candy, will be using MTR's manufacturing and distribution infrastructure to push its plans in the confectionary space.

A total investment of Rs 40 crore has been made towards putting up a production line at MTR's factory in Bengaluru, besides plans to leverage the latter's robust supply chain and distribution network across India for wider reach.                    

"Laban has been launched with equal support from MTR and Orkla. Extensive research was undertaken to arrive at a formulation that would not only suit discerning Indian consumer preferences, but also retail the brand attributes. The product proposition has been localised to make it a 100% vegetarian confectionary," Orkla Chief Executive Officer Peter Ruzicka said.

The Indian confectionary market is seeing huge potential that Orkla is looking at tapping, with Laban expected to hit 1,25,000 outlets across the country. Latest estimates show that the confectionary industry in the country is valued at Rs 8,200 crore, with a CAGR of 7%.

It must be noted that Orkla acquired MTR Foods in 2007, which has since grown to Rs 800 crore in sales, growing at a CAGR of 16%.