Hershey keen to export in much bigger way from India, but there is a catch
Global snacking giant The Hershey Company, owner of iconic brands like Hershey’s, Reese’s and Jolly Rancher, sees tariff barriers as a key hurdle to export products from its India unit.
Global snacking giant The Hershey Company, owner of iconic brands like Hershey’s, Reese’s and Jolly Rancher, sees tariff barriers as a key hurdle to export products from its India unit. The American company known for its chocolates is keen to export in a much bigger way from India, provided tariff barriers are brought down to facilitate the same.
Responding to a DNA Money query on exports from India, Steven Clay Schiller, president - international, The Hershey Company, said, “We would love to see tariff barriers come down and more reciprocal agreements between India and other markets as we would love to export in a much bigger way. But there are very restrictive tariffs to import into India; if you are another country, why would you make it easy for India to export to you.
So we’d love to see more bilateral and multilateral agreements that lower trade barriers and promote more free trade. We’d love to make our infrastructure work harder.” The Hershey Company’s local unit Hershey India Pvt Ltd exports from India into a set of countries that has Indian diaspora. According to Herjit S Bhalla, managing director, Hershey India, the company’s export volumes are very small.
“It’s a set of countries that we go into where you have the Indian population who buy some of the products in our portfolio. So it’s a part of a bigger plan and we don’t want to get into specific details. Yes, we are (exporting from India) but we are open to doing this in a much bigger way going forward. Currently, the focus is to really cater to the demand in the Indian market and then take it abroad,” said Bhalla.
The India unit is not importing any of the products and everything sold in the country is manufactured locally, Bhalla added. Speaking about the India market and its importance for the parent firm, Michele Buck, president and chief executive officer, The Hershey Company, said, our international business is key to our overall success.
“India is a critical part of that success. It’s one of the several international focus markets where we are making measured investments. India offers a significant growth opportunity given its economic and demographic potential and expected consumption growth rates in the years ahead. It is one of the fastest growing economies.
“We are committed to the future of Hershey India and have strong strategic plans in place. I am confident that India business will continue to grow and play and important role in the growth of our company in the years to come. Continuing with our tradition of bringing goodness, we are now introducing one of Hershey’s most loved product Hershey’s Kisses to India and making great tasting chocolates to consumers available here,” said Buck.
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The Made in India Hershey’s Kisses will be offered across the South India markets - Tamil Nadu, Andhra Pradesh, Karnataka and Kerala in the initial stages. The company will gradually make it available across the country in a phased manner. It will be available at a price point of Rs 50 for a small pack of 36 gram while the larger take-home pack will be priced at Rs 140 for 108 gram. The products will be available in modern trade, large general trade and e-commerce portals.
Source: DNA Money
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