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Orkla Group, the Norwegian leader in branded consumer goods and parent company of MTR Foods Pvt Ltd, announced its foray into the ₹8,200-crore Indian confectionery market with the launch of Laban, Norway’s Number 1 confectionery brand.
The company has invested ₹40 crore in setting up production line for Laban at MTR Foods’ Bengaluru manufacturing facility and an additional₹35 crore will be spent in brand-building activities over the next three years.
Targeted at millennials, Laban, which has been localised for the India market is a human-shaped, fruit-flavoured chew in popular flavours – strawberry, mango, orange and green mango.
Priced at ₹10 for the 26-gm pack and ₹30 for the 6-gm pack, Laban will be available at all general and modern trade outlets and will be manufactured and distributed by MTR Foods in India.
“The Indian confectionery market is close to ₹8,200 crore growing at 7 per cent YoY, we would like to tap into this huge opportunity. This, along with other economic indicators of the country, has given us the confidence to launch Laban in India” said Peter Ruzicka, CEO, Orkla ASA.
Stating that Laban was extensively tested at the concept and product level in India, Sanjay Sharma, CEO, MTR Foods, said: “We realised that certain product attributes require localisation. It took three years of development for us to bring Laban to market.” Describing it as a differentiated, stretchable and playful candy that is 100 per cent vegetarian and non-sticky, Sharma said: “Laban is part of a very fast growing segment within the Indian confectionery market, that has grown to a ₹320-400 crore market today. We are targeting to grow Laban into a sub-₹20 crore business in the next 12 months.
Asked whether Orkla will launch products targeted at millennials to drive revenue growth in India over the next few years, Atle Vidar-Nagel Johanssen, CEO, Orkla Foods, said: “Yes, our future growth in revenue in India will come from millennials over the next three-five years.”
Orkla Group acquired MTR Foods in 2007 and has since invested ₹250 crore in the overall infrastructure upgradation in India.
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