Haldiram’s Diversification into Premium Chocolate Industry
Haldiram’s Foods International Pvt Ltd, a renowned name in the Indian sweets and savouries market, is making a bold move into the premium chocolate industry. This venture positions them alongside established competitors such as ITC and Mondelez, as they broaden their range of packaged foods. The Nagpur-based company has launched a line of chocolates under the Cocobay brand. These chocolates, priced between ₹180 and ₹399 for single serve bars and ₹2,000 for larger packs, have been introduced in several cities including Mumbai, Pune, Nagpur, Bangalore, and Surat.
Market Trends and Expansion Plans
The Cocobay chocolates will be available in both premium and general stores, as well as on direct-to-consumer and quick-commerce platforms. This move comes at a time when the Indian chocolate market, valued at ₹17,200 crore in 2019, is expected to grow at a compound annual growth rate of 10% from 2019 to 2023, according to Mintel, a market research firm. Jain observed a shift in consumer preferences, especially among the younger generation, from traditional sweets to more western-style premium products. This trend presents an opportunity for Haldiram’s to cater to this new demand with its expanded product range.
While Haldiram’s Foods’ namkeen, bhujia, and cookies are already popular in India and abroad, the company plans to introduce more bakery and snacking products. Over the past three years, it has also grown its frozen foods portfolio under the Haldiram’s Minute Khana brand, which was primarily export-oriented until 2020. Now, 25% of these products, including samosas and paranthas, are sold locally. Jain emphasized that while the company is experimenting with new product lines, it remains committed to its core business. He highlighted the potential of the bakery segment in India, which is currently dominated by bread products, and expressed the company’s intent to become a major player in the premium bakery market.
Haldiram’s Foods is not just limiting itself to packaged foods. It also plans to double the presence of its restaurant chain in South and West India. This expansion mirrors the efforts of other packaged food companies that are investing heavily in India due to the growing preference for branded food. In 2022, Nestle SA announced an investment of ₹5,000 crore to build factories and research centres in India. Similarly, Mondelez India committed to investing ₹4,000 crore over four years to increase its manufacturing capacity and develop more warehouses and cold-chain facilities.