Kraft acquires Cadbury…'Processed foods' in Indian market will grow

Kraft Cheese…is what comes to my mind..that I could find available to buy in any other country have visited…but Kraft is known for its global share in processed foods!

For the US Food Giant ‘Kraft’ – this is the second attempt of the company to enter the fast growing India market, after its unsuccessful attempt with its local dealer to sell ‘Tang’ a powdered fruit drink, exiting Indian market in 2003. But,this time, it cannot go wrong as it has acquired Cadbury that has 70% market share in Indian chocolate market through its 1.2 million retail outlets all over the country. And,with its growing appetite for processed foods due to emerging ‘working couples’ in India, Kraft has made the right choice! Add to that… the world’s largest ‘young’ population in India, the market is bound to grow further. Brittania, Amul and Nestle have to run for retaining its market share in India! The total market size for processed foods is around INR 50,000 to 60,000 crore…there could be more entrants too!

And what stands out most – is the relatively-muted reaction in Britain to the loss of yet another local champion (Cadbury) to a foreign company and Indian market. Though, Gordon Browm, UK Prime Minister, has assured…there will be no job losses in UK due to this acquisition.

Kraft, with it’s competitive local manufacturing facility in India, can offer its premium products at much affordable price to Indian market and if possible, export in the region too.


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