VANGUARD BUSINESS SCHOOL

MONDELEZ INTERNATIONAL CADBURY DAIR YMILK

SUPPLY CHAIN MANAGEMENT IN PRACTICE

SUBMITTED BY,

ARSHA SUBASH
MONDELEZ INTERNATIONAL
CADBURYS DAIRYMILK
The above map contains the details of:

Manufacturing Units
Cocoa Suppliers
 Sugar Suppliers
Sales Offices

PROCUREMENT OF RAW MATERIALS

The major raw materials used for the production of Cadbury Dairymilk
range are cocoa and sugar

COCOA

The cocoa is procured either in the form of cocoa pods or as beans

In India, cocoa is primarily grown as an intercrop in southern states like
Kerala, Karnataka, Tamil Nadu and Andhra Pradesh
Andhra's cocoa fields are concentrated in west Godavari, east Godavari and
Krishna districts.
The total area under cultivation in the four southern states at the end of
2015-16 was 81,274 hectares
India's per capita chocolate consumption, on the other hand, is estimated to
have grown at 7.8 per cent between 2010 and 2015, according to Mintel, a
market research firm.
Between 2015 and 2016, India's growth was at 12 per cent, which was even
more impressive.
Mondelez India sources a third of its cocoa requirements locally
The company has reached out to 1 lakh farmers in the southern states with
the help of co-operative societies.
For procuring cocoa, the company get in contact with the major members of
the co-operative societies and the society procure all the cocoa and send to
their ware house in Tamil Nadu
DCCD procures all the cocoa from the co-operatives of each states and this
is transported to their cocoa operation centre in Dharapuram.

STATE PLACES
Tamil Nadu Kanyakumari, Coimbatore &
Tirunelveli
Kerala Kottayam , Munnar
Karnataka Haveri, Shivamoga, Davanagere,
Chitradurga
Andhra Pradesh East & West Godavari districts
Sources:
http://www.thehindu.com/todays-paper/tp-national/tp-andhrapradesh/Mondelez-
India-helps-expand-cocoa-footprint/article15472065.ece
http://economictimes.indiatimes.com/industry/cons-products/food/although-
indias-consumption-of-chocolate-is-steadily-growing-but-we-still-depend-on-
imports-for-cocoa/articleshow/58766956.cms
http://www.rediff.com/money/report/pix-special-mondelez-indias-successful-
cocoa-story/20150303.htm

SUGAR

One other major raw materials used for the production of this chocolate
range is sugar

Major Suppliers in each states are as follows:

Uttar Pradesh Dalmia Bharat Sugar and Industries ltd, Bajaj Hindusthan
Limited, Triveni Sugar Group, Dwarikesh Industries Ltd
Punjab Rana Group
Haryana - DCM Shriram Industries Ltd.
Maharastra Shree Renuka Sugars
Tamil Nadu - Dharani Sugars & Chemicals Ltd, Raj Shree Sugar

MANUFACTURING UNITS

Most of the location of their manufacturing units was selected based on the
availability of their raw materials
This actually helped them to reduce their procurement cost (transportation)
Sri City is their new manufacturing unit which will start its operation partly.
DISTRIBUTION
MULTI CHANNEL DISTRIBUTION

FACTORIES

DEPOT

C&F
AGENTS

DISTRIBUTORS

MODERN
RETAILERS WHOLESALERS
TRADE
Distribution Network in India

available in over a million outlets across the country

To tap this huge potential Cadbury's distribution channels include the
manufacturing warehouses where the chocolate production takes place. This
is followed by wholesaler & then followed by retailer
Due to 65 years of presence in India - has deep penetration- 2,500
distributors; 550,000 retailers
Source: file:///C:/Users/User1/Downloads/cadburydairymilk-130826113829-
phpapp01.pdf
WHOLESALERS IN BANGALORE

1. Bharath Traders
2. Shcredees Umyal Traders
3. RJ Enterprises
4. Sanmathi Traders
5. Malwa Stores
6. Ramdev Trading
7. Supreme Traders
8. Silverline Trading Company
9. SriBalaji Distributors
10. Padmamba Enterprise
11. Grow Smart Marketing
12. Trial Malligai Agency
13. Gaurav Agency
14. Jai Prakash Enterprise
15. AB Marketing

Source : https://dir.indiamart.com/impcat/cadbury-dairy-milk-
chocolate.html?biz=30
Major Wholesalers in India

Source : https://dir.indiamart.com/impcat/cadbury-dairy-milk-
chocolate.html?biz=30
Outlook to Indian Chocolate Industry: From beans to bars
Chocolate is wildly popular for individual consumption, as gifts and for the
purposes of baking and cooking.
The demand for cocoa is predicted to rise by 30% by 2020, the industry is all
set to ignite for a country like India.
The chocolate industry offers a wide variety of opportunities for the small
business owners too.

The industry growth will be driven by population growth as well as

expansion into new markets, product innovation and rising disposable
income levels leading to a greater purchasing of premium offerings.
Indian Demographics and Chocolate Industry

India is a country with very pronounced humid tropics suitable for cocoa
plantations. In the early 70s, the plantations were introduced as a mixed
crop due to their commercial importance.
Cultivated mainly in the southern states of India.
Off the total cocoa production in our country, 1/3rd of it is produced
singularly by Tamil Nadu
A latest trend that has set its foot in the Indian market is the increasing
demand for dark and sugar free chocolates

There is a growing awareness for ingredients which takes care of wellness

and there are various international certifications for such chocolates too

With over 70 % of the market being controlled by just three players, there
exist huge potential growth opportunity
The potential is strengthened by the fact that the evolving Indian customer is
now ready to explore newer brands, flavors and formats of chocolate
The market trend is moving towards the exotic chocolate experiences at
affordable prices and India no longer is dependent just on imports for high
 quality exports. Also, there is greater potential for customized and luxury
chocolate segments
The size of the Indian chocolate confectionary market in 2016 was around
Rs 11,260 crore, according to Euromonitor International and Indian market
is one among the fastest growing chocolate market globally.
The chocolate market in India is currently growing at a rate of 20% annually
and projected to grow by 30% by 2020
Close to 70% of the chocolate is consumed in urban India. Poor
infrastructure, lack of cold storage facilities and greater affinity for
traditional sweets inhibit the growth of the rural chocolate market

Source : Chocolate Industry Report, Inside Story

MONDELEZ INTERNATIONAL: CADBURYS DAIRYMILK

one of the worlds largest snacks companies, with 2016 net revenues of
approximately $26 billion

Source: Mondelez 2017 Fact Sheet

STRENGTHS

Consumption of Cadbury chocolate range

Source: http://www.mondelezindiafoods.com/