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General Mills plans to double production of baking products in India

General Mills plans to double production of baking products in India Food and Beverage Business

General Mills, a major player in the food and beverage industry, has announced its plans to construct a new Pillsbury baking mixes plant in India. This move reflects the company’s commitment to expanding its presence in the thriving food and drink business market in the country.

The groundbreaking ceremony for the new plant took place in Nashik city, Maharashtra state, and signifies General Mills’ dedication to meeting the growing demand for its Pillsbury bakery solutions in India. With this new facility, the company aims to double its local production and strengthen its position in the market.

Expected to commence operations by August next year, the new plant will produce Pillsbury baking mixes specifically for the Indian market. General Mills will invest approximately Rs1bn ($12m) in this project, emphasizing the importance of the Indian market as a pivotal growth strategy globally.

Anand Khurana, the country director for General Mills’ business in India, states, “The bakery industry in India is witnessing remarkable growth. The new facility will demonstrate Pillsbury’s commitment to serving more bakers in India and supporting their business growth.”

Balki Radhakrishnan, vice president and managing director of global emerging markets at General Mills, highlights India as one of their priority markets worldwide. He adds that the new manufacturing plant reinforces their dedication to growing in India and catering to the evolving consumer needs in the country.

With its Indian business headquartered in Mumbai, General Mills already operates three sales offices, two manufacturing plants, an R&D lab, and 17 Häagen-Dazs shops in the country, employing over 550 people. This new venture further solidifies their presence and commitment to the Indian food and drink market.

In terms of financial performance, General Mills’ international business, excluding North America, experienced a 16% decline in net sales to $2.8bn in the year to 28 May. This drop was partly attributed to business disposals and an ice-cream recall, resulting in a decrease in volumes. However, organic sales witnessed a 5% increase, showcasing their resilience and adaptability to market challenges.

Operating profit also saw a decline of 30% to $162m due to higher input costs and lower volumes. Nonetheless, the group’s overall net sales increased by 6% to reach $20.1bn. On an organic basis, net sales grew by 1%.

As General Mills focuses on expanding its market reach and catering to consumers’ changing preferences, this new manufacturing plant in India will play a crucial role in their growth strategy. By providing enhanced bakery solutions and meeting the increasing demand, General Mills aims to delight more consumers in India and achieve long-term success in this priority market.

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