INDIA Choco Pie producer announces expansion into India with the completion of its production facility March 2021
Orion Corp, South Korea’s producer of world-renown Choco Pie, is expanding its market into India with the recent completion of its factory in India’s state of Rajasthan.
India, being the world’s 2nd most populated country, also boasted a huge confectionery market valued at more than US$15 billion, and Orion is excited over the huge potential for Choco Pie and its other products in this country.
Orion’s new factory in India is its 10th factory overseas. Presently, it has 5 plants in China, and 2 each in both Russia and Vietnam. A direct plant in India will help Orion to reduce logistics and manufacturing costs to make its products more competitive for the domestic market. Previously, Orion products were imported from its Vietnam plant to India.
Initial plan is to manufacture its signature Choco Pie in India, and later it will introduce its other lesser popular snacks and biscuits brands.
In January, Orion reported a preliminary 25% increase in its net profit in 2020 to US$247.1 million. The company noted strong growth in all of its divisions/plants in Russia, Vietnam and China despite the pandemic. With the completion of its facility in India, Orion is expecting another boost in sales within the first half of 2021. Roughly 65% of Orion’s sales is generated from overseas markets.
Orion started the construction of its India plant in 2019. With the new facility, Orion can now sell its products competitively while at the same time able to sell fresh and localised products. With India’s diverse cultures and ethnic groups, Orion invests in hiring local talents to identify the needs of this new market.
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