Hershey-Godrej announces joint venture

Mumbai, Apr 3: North American chocolate major Hershey company today announced a joint venture with the Godrej Beverages and Foods Limited (GBFL) to manufacture and distribute confectionery, snacks and beverages in India using the latter's market capabilities.

Announcing this at a press conference here, Richard H Lenny, Chairman and CEO of Hershey,''Given that India is an important growth market with tremendous long term potential, the tie up with Godrej, who are close to the Indian consumers, the joint venture will be a strategic fit in our growing portfolio of confectionery brands.'' Mr Adi Godrej, Chairman, Godrej group was also present at the conference.

In the Joint Venture, named as Godrej Hershey Foods&Beverages Limited, Hershey will hold 51 percentage of stakes after acquiring the 40 percentage stakes held by IL&FS while the Godrej industries limited will hold a stake of 43 percentage.

A Mahendran, mentor director of the new company will hold a stake of 6 percentage.

While the deal is expected to open up the doors of the growing Indian markets to the American major, it is learned that the company will initially import their products to Indian markets before opening up manufacturing centers in the country.

The Hershey Company is the largest North American manufacturer of chocolate and sugar confectionery products having revenue of nearly billions.

UNI