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Business

Mitsui, Goldman Sachs to launch food business in India

TOKYO -- Leading U.S. investment bank Goldman Sachs and a subsidiary of Japanese trading house Mitsui & Co. will launch a confectionery and beverage business in India through Global Beverages & Foods, a joint capital venture they recently set up there.

    The new company, which has 3.15 billion rupees ($55.3 million) in capital, is based in Chennai in southern India, while the development facility will be located in Bangalore. The startup will be headed by Arumugham Mahendran, who was managing director of India's consumer product giant Godrej Consumer Products until last year. Plans call for employing several marketing experts to establish a sales channel to small retailers.

     The company will specialize in the development and marketing of original products mainly intended for middle-class Indian consumers, while the production will be outsourced to local companies. The operation will start as early as in summer.

     The first products are expected to include such confectioneries as chocolate that will initially be released in southern India, with plans to expand into other produce categories, including beverages, later.

     The new company hopes to earn sales of between 25 billion yen ($244 million) and 30 billion yen from originally developed products in the next five years. The Indian food market as a whole is estimated at around 6 trillion yen.

(Nikkei)

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