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Company’s Operations

What is the company’s main product?
The industry’s main products are Confectionery , Wafer & Cake and Biscuits.

What key raw materials does the company depend on?

Key ingredients include white corn and wheat flour, and cooking oils.

What additional ingredients does the company use for production?

additional ingredients such as Salt and flavoring are added.

What does the company do with byproducts?

Byproducts are sent to farms to be used for animal feed.

What are the company’s quality control measures?

Optical sensors spot and discard defective chips. Quality control managers inspect incoming  ingredients, test the viscosity of oils, and taste-sample every product, typically on the hour.

How many manufacturing plants does the company operate?

To reduce product shipping costs, companies Planning to operate multiple manufacturing plants  across the india.

What are the company’s major operating expenses?

Major expenses include the primary ingredients . Other expenses include diesel, natural gas,and  packaging materials.

Who are the company’s customers?

Companies commodities have attracted to the taste buds of adults and children alike across  borders. With respect to our taste, flavor and products we have definitely surpassed boundaries.

Typical customers are grocery wholesalers, warehouse club stores, food service distributors, and  convenience stores.

Indian confectionery industry on a growth trajectory driven by rising consumerism and young  consumers.

India’s confectionery market is set to witness robust growth  in the coming years. The factors contributing to the  growth are buoyancy in demand, increasing consumerism,  dual family incomes and a rising young population.

Confectionery categories are chocolate like eclairs and toffees,  sugar confectionery  or hard boiled  candies lollipops, mints & lozenges,  bubble gum and cereal bars.

The major confectionery companies in India are Cadbury ( Dairy Milk, Perks, Gems, 5-Star celebrations, Bytes,   Dairy Milk Eclairs, Eclairs Crunch, Halls, Bubbaloo Bubblegum),  Nestle(Kit Kat, Kit Kat Chunky, Munch, Munch Pop Choc and Milkybar Crispy Wafer), Parle (Simply Imlee), HUL (ChocoMax and Max Magic candy), Perfetti ( Centre  Shock, Happydent White, Alpenliebe, Big Babol, Chloromint and Cofitos) and  Candico (Mint-O and Loco Poco).

It has been reported that the country’s confectionery industry is the largest in the  food processing segment. The  market is estimated to be about Rs 1,400 crore, registering a growth of  9% per annum.

According to Chetan Hanchate, director, Centre for Processed Foods, the Indian market for confectionery has been  indicating  robust action going by the frequent  product launches, and consumer promotions by companies.


Confectionery industry overview

A major portion of the confectionery industry in India comprise the local subsidiaries of global confectionery majors  like Perfetti, Lotte, Wrigley's and Cadbury. Cadbury India, the  fully owned subsidiary of Kraft Foods Inc, estimates  the  total global confectionery market at  Rs  41 billion with a volume turnover of about 2,23,500 tonnes per annum. The category is largely consumed in urban areas with a 73% skew to urban markets and a 27% to rural markets. Hard boiled candy accounts for 18%, Eclairs and Toffees account for 18%, Gums and Mints and lozenges are at par and  account for 13%. Digestive Candies and Lollipops account for 2.0% share, respectively. The overall industry growth is estimated at 23% in the chocolates segment and sugar confectionery segment has declined by 19%.

Giving an overview of the industry in India, a section of management students of the Indian Institute of Management, stated that the confectionery segment is keeping pace with the evolving new Indian consumer, who needs a toffee or a candy or a bubble gum to keep him company.

Although the Indian confectionery market has several unorganized players, a lot of consolidation took place post 2005.

It all began in June 2004, with the erstwhile Parry`s Confectionery, part of the Chennai-based  Murugappa group,  was bought over by Korea’s Lotte India.

This was followed by  Godrej Foods & Beverages Limited which acquired Nutrine Confectionery Company Private  Limited in June 2006.

Close to the heels of this deal was a joint venture effort in April 2007, when the Hershey Company, North America's  leading chocolate and confectionery manufacturer, announced the formation of Godrej Hershey Foods & Beverages Ltd., to manufacture and market confectionery across the country.

Among the well-known national names are Candico which is engaged in the development of a range of products.

Naturo Food & Fruit Products Pvt. Ltd in the outskirts of Bangalore  is one of the largest Indian confectionery  companies known for its  innovative fruit based products. Its Fruit Bars range under the brand name ‘Naturo’ offers a tasty, healthy and appetising fruit snack and is available in Apple, Mango, Strawberry & Orange pure fruit varieties.  The fruit bars are manufactured in a captive and HACCP and BRC certified facility is totally natural with no sugar and preservatives added. The fruit bars are manufactured employing a unique retexturised process to retain the vital nutrients of the fruits, stated G Lakshminarayanan, senior vice-president, Naturo Food & Fruit Products Pvt. Ltd

Pops Foods Products Private Limited manufactures a range of bubble gums

Central Arecanut and Cocoa Marketing and Processing Co- operative Ltd (Campco) based at Mangalore which is  producing  chocolate for Cadbury-Kraft  has now inked a pact with Karnataka Milk Federation to manufacture  chocolates at its facility. The company Campco produces all types of moulded chocolates along with semi-finished  products like cocoa butter and cocoa powder.
"Food research is open to assess the new product innovations which is a prime factor for the growth of the industry,” stated Dr V Prakash, director, Central Food Technological Research Institute, Mysore . “We have also developed a tamarind candy and transferred the technology to industry. "

At Defence Food Research Laboratory at Mysore, efforts were on to develop a range of candies and fruit bars for the armed forces stationed in high altitudes, stated Dr AS Bawa.

Trends in confectionery:

It really is observed by a section of food scientists from the University of Gardening Sciences department of food  innovation and research that the confectionery industry has achieved maturity. The expansion is attributed through globalized efforts like mergers and acquisitions or joint development efforts.

There is also the factor of increasing incomes and affordability in most of the developing markets which indicate  novel tastes and aspirations for newer confectionery.

Another trend is the growing health consciousness which has triggered the development of confectionery in less fat, low-sugar, versions. There is also the inclination to look at products that are free from manufactured  colours, flavors and preservatives.

This throws open business opportunities for development of ingredients using 100 % natural ingredients, explained experts at UAS.

The confectionery sector has felt significant changes since a few years. Food consultants are attributing this to  changing consumer consumption habits. confectionery manufacturers are working to influence to health-conscious consumers with functional innovations, guaranteeing that they still continue to show the skills of active  indulgence.

Challenges in the confectionery industry

The rising inflation and food prices together with the growing crude prices would impact the confectionery industry  in the coming months. While cost of sugar is a concern, there is also the issue of working out costs in packaging driven by petroleum products as confectionery items are packaged in plastic packs. Therefore the industry will now need to work out a pricing due to big jumps in the cost of raw materials such as sugar which cannot be absorbed by the  industry, stated observers.

Raletta Foods to expand into bakery sector

Raletta is a leading Confectionery manufacturers and exporter in India. Currently producing candy, toffee, gum, mint, chocolate and wafer. Raletta's strategic decision to expand into bakery sector is like hitting the hot iron.

Already world leader in chocolates and specialty materials for the candy, Confectionery, Pharmaceutical, Agricultural and Industrial Industries, has announced the expansion few days back. The expansion investment price was not disclosed.

Raletta will sell to large bakery and food chains with optimized manifestation, quality, moisture mechanism, production proficiency, freeze steadiness and shelf life.

“As Raletta is a confectionery manufacturer, bringing bakery into our fold is a perfect fit for us to not only expand our business into the bakery industry, but to increase our portfolio of products we now offer to our customers in the Food & Candy,” Director of Marketing at Raletta.

 

Raletta Foods Launches candy gloss

Raletta, a Coated chocolate leader, has expanded its line of high performance polishes and glazing agents (release agents) for the confectionery industry.

Certicoat Glosses are extremely unchanging, high polish, anti-stick finishing go-betweens for pectin, gelatin and starch gums and for molded liquorice. Certicoat coatings are formulated with natural waxes like bee’s wax and carnauba wax, and highly stable vegetable oils and fats to provide excellent transparency, gloss and anti-sticking efficiency. Certicoat polishes are formulated with different viscosities and oil/wax permutations to bring the ideal mixture of luster and lubrication for tacky and liquor ice products.

 Certicoat 537M and 360 are highly stable wax-based glazing agents providing a beautiful shine, resistance to moisture and excellent lubricity to control piece-to-piece sticking.

Add-on, Raletta has said that it will be developing its line of palm-free coating inventions.

Raletta Takeoffs Innovative Confectionery and Chewing gum Essence Twists

Raletta are empowering manufacturers to fixed original wishes on the chewing gum and sugar centered confectionery marketplaces with a novel variety of environmental friendly essences. Enthused by the corporation’s brand name “Raletta Foods”, which determines the newest gastronomic movements on both a worldwide and a native scale, a variety of exclusively encouraging flavors have come to existence.

With an attention on thrilling combinations such as garden-fresh kiwi and soft pineapple or coconut and passion fruit, the mouth-watering flavors can be used to charm to the tastes and hopes of customers of all eternities. The new-fangled range encompasses a variety for use in all sugar-based sweet as well as gums.

Merging extraordinary quality raw ingredients, the newest expertise and detailed flavoring knowledge, the specialists for sugary flavors based at Raletta Foods in Indore, India, have shaped a variety of exclusive flavor recipes. To rally the growing demand for palate senses past the normal, the variety bids original flavor practices: while the mixture of orange liqueur and green tea flavors brings an urbane gum experience for grown-ups, kids will be more sketched to the steamy composite of coconut and watermelon.