The Silicon Review ^Asia

Ferrero India, a unit of the Italian branded chocolate manufacturer Ferrero SpA has slipped into losses in the fiscal year 2018. The company’s revenue declined by 17%, which marked the worst performance since it entered the Indian market 10 years ago.

In its FY18, Ferrero India’s revenue was Rs 1,538 crore, with a net loss of Rs 89.6 crore during the year to March 2018. Back in 2017, the company had posted sales of Rs 1,848 crore with a net profit of Rs 21 crore. According to the company, its sales were hampered by the new taxation policy and reduction in exports.

In the last 10 years, the company had spent more than Rs 500 crore on lifting up their production and distribution capabilities. Moreover, the company is looking forward to investing an additional amount of Rs 500 crore. In India, Ferrero SpA is the second largest confectioner and is leading the $1.2B chocolate category with 66 percent share in it.

The Indian population consumes roughly 120 grams of chocolate per year (based on per capita). But among the emerging markets, the country ranks lower and 10 times lower than the developed nations. It’s the countries and the sheer size of the market which attracts different chocolate manufacturers around the world.

American chocolate manufacturers Mars will set up a manufacturing unit in Maharashtra while in October Hershey’s rolled out Kisses chocolate in the country.