Hong Kong food firm enters India

By Ankush Chibber

- Last updated on GMT

India's snacks market is the lucrative target for Hong Kong food firm
India's snacks market is the lucrative target for Hong Kong food firm

Related tags: Tamil nadu

Hong Kong-based food major Kiu Fung Hon will launch its snack and confectionery products in India in a bid to cash in on the country’s growing sector.

According to the Ministry of Food Processing Industries (MOPFI), the snack food industry in India is worth US$2bn in value and over 4,00,000 tonnes in terms of volume.

The US$2.5bn food company will market products under its ‘Edo’ brand, collaborating with local firm Four Leaf Technologies for distribution.

Chocolates, biscuits and wafers, potato fries and chips, will be the initial products on offer, the company said, with a total of 17 products introduced in the first phase. The company intends to bring 300 products to India eventually.

Strategic local entry plan

The food major is targeting the states of Tamil Nadu, Puducherry and Andhra Pradesh first and will then enter, Karnataka and Kerala in a month. Kiu Fung Hon has said it aims to be marketing the product range across all of India India within a year. Raman Sarathy, CEO of Four Leaf Technologies, said that the company is targeting a first year business of US$10m.

“Despite the import duties and freight charges most of the products will be priced on par with the domestic brands. For the first year, we are cutting our margins by 10 to 15 per cent to remain competitive in the market,”​ said Sarathy.

Four Leaf will be able to leverage its four-year-old food distribution network, operational in pickles, instant mixes and other ready-to-eat products for India-based Ushodaya Enterprises, it said.

The Edo brand is currently present in over a dozen countries including Canada, Australia, Philippines, Singapore, US, and the UK – markets it services via a host of production facilities.

The company’s current manufacturing operations includes a facility in China as well as facilities in Singapore, Japan, South Korea, Thailand, Malaysia, Taiwan and Vietnam.

Related topics: Business

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