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Cadbury India sales up by 6% in five months

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Cadbury India sales up by 6% in five months

Chocolate confectionery major Cadbury India Ltd has emerged as the fastest growing company in the slowdown-hit fast-moving consumer goods (FMCG) sector. The company has registered a sale growth of 5-6 per cent during this period.

The average growth of the industry is about 2-3 per cent in the last five months. In fact, the FMCG industry is said to have registered a negative 0.6 per cent growth last month. The other major players in the FMCG industry include, Hindustan Lever Ltd (HLL), ITC, Colgate-Palmolive (India), Britannia Industries, Nestle India, Procter & Gamble Hygiene & Healthcare, Godrej Consumer Product Ltd, among others.

Cadbury India will be focussing more on major brands like Cadbury Dairy Milk (CDM), Bournvita, Eclairs, 5 Star and Perk to beat the slow down.

The company has been able to get around the slowdown through such strategies like adding new outlets and launching value-for-money propositions through new price-led product initiatives.

The big factor which led to the growth is the new 50,000 new retail outlets added last year. The company hopes to add a similar number this year. With the company strengthening its base in both urban and semi-urban markets, its presence in the rural markets is not far away.

The new initiatives behind the launch of Perk Slims — at a price of Rs 5 — has enhanced the brand sales. “We look at driving value growth through higher volumes,” Mr Cadbury maintained, when questioned on whether the company was looking at driving value growth through price increases.

Chocolate confectionery contributes about 64 per cent to Cadbury India’s sales (Rs 571.14 crores in 2000). Sugar confectionery forms 12 per cent, and the balance comes from food drinks.


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