February 24, 2021 10:57
Orion is set to make inroads into the Indian confectionery market following the opening of its new factory there, the company said Tuesday.
The factory in Rajasthan state is the Korean confectionery giant's 10th overseas plant. It currently has five plants in China, two in Vietnam and two in Russia.
The factory will allow Orion to cut logistics costs and make products tailored to Indians' tastes. So far, it has sold products made in Vietnam there. It has hired a largely local staff to get a better sense of Indian demand.
According to Orion, the Indian confectionery market is worth about W17 trillion (US$1=W1,112). The new plant will focus on producing Choco Pie, Orion's flagship snack, in the initial stage.
Last year, overseas markets accounted for more than 65 percent of Orion's sales. A main reason for the success of its overseas business is its "localization" strategy. Choco Pie products sold in Russia, for example, are filled with a particular jam that Russians like, while Orion's shrimp snacks sold in China feature the spicy mala seasoning flavor beloved of many Chinese consumers.
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