Source: Times of India, Aug 17, 2015
Chennai: World’s largest cereal maker, the $14.6-billion Kellogg Company, wants to triple the size of its Indian business. Kellogg India is a roughly Rs 800-crore company, contributing 10% to the parent’s Asia-Pacific revenues, making the country its fastest growing market in the region. The plan is to take this contribution to 20% in five years.
Considering that Kellogg India is growing in double-digits, the Michigan-based parent is making large investments in manufacturing and also plans to set up its first R&D facility in the country at Taloja, near Mumbai. Emerging markets like India are key to Kellogg Company, whose second quarter earnings fell 24% from a year ago, with persistent weakness in its core US cereal market.
After making an investment of $60 million in its second manufacturing plant at Sri City (Andhra Pradesh), Kellogg Company is already planning to set up a third cereal facility in India in 3-4 years. The company expects the demand to grow in the wake of changing breakfast habits in India. In an exclusive interview to TOI, John Bryant, chairman & CEO, Kellogg Company, said: “In the last 12-18 months, we invested about $100 million in India, which gives the potential size of opportunity here.”
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