Global snacks major Mondelez International ups focus on India with new setup
Global snacks and chocolate major Mondelez International (Cadbury in India) has restructured its emerging markets operations to create individual business units for India and China.
MUMBAI: Global snacks and chocolate major Mondelez International (Cadbury in India) has restructured its emerging markets operations to create individual business units for India and China and dissolve the developing markets division following the retirement of its head Sanjay Khosla.
Anand Kripalu, who has been heading India and southeast Asia, has been redesignated India MD as Mondelez sharpens focus on growth markets such as India, China, Russia and Brazil. Mondelez CEO Irene Rosenfeld has said that emerging markets, which account for 44% of the firm's global revenues, will receive the lion's share of its resources as developed markets are still going through difficult times.
Under the new structure, Mondelez has announced five worldwide regions, namely, Europe, North America,Latin America, Asia Pacific, and Eastern Europe, Middle East and Africa. Heads of each of these regions will report directly to Rosenfeld. The APAC region, headed by Pradeep Pant, will have four business units—Developed Markets, SE Asia, India and China.
Confirming the development, Kripalu said, "A key component of the focus of Mondelez International is India and China. These are growth engines for the global company and require undivided focus given their strategic importance to the global strategy."
The new streamlined region structure is expected to fuel growth by enhancing collaboration, expediting decision making and driving efficiencies. Kripalu's portfolio will include neighbouring countries Sri Lanka and Nepal. Globally, Rosenfeld has stated that the company's priority is BRIC markets, which will receive "the lion's share of our resources".
Mondelez will have individual country heads for each of these markets. Kraft Foods acquired Cadbury in 2010 and in October 2012, Kraft's snacks business that includes brands such as Cadbury, Tang and Oreo was spun off into Mondelez. The flagship company was left with the grocery portfolio, which includes Philadelphia cream cheese and Maxwell BSE -0.58 % House coffee.
Kripalu, who joined Cadbury India in 2005 as managing director India, became president Asia for Cadbury in 2008. In 2010, after Kraft's acquisition, he became president south Asia and Indochina, responsible for India, Thailand and Vietnam. In March 2012 he also took charge of Malaysia and Philippines. Cadbury has more than 70% share in the Indian chocolate market.
The company reported sales of Rs 3,359 crore in 2011 and is estimated to be growing around 35% a year. Since 2010, Cadbury India has brought in two Kraft brands— Oreo biscuits and Tang — and it has been investing aggressively on advertising and distribution. This year Mondelez reported slightly slower growth rate in some developing markets like India because the company did not have enough manufacturing capacity to meet the demand.