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Snack firm Orion completes construction of factory in India

Company behind Choco Pie to branch out into Indian market

Orion’s new factory in the state of Rajasthan, India. (Orion)
Orion’s new factory in the state of Rajasthan, India. (Orion)
South Korean confectionery maker Orion Corp., famous for the nation’s beloved Choco Pie snack, said Tuesday that it has completed the construction of a production plant in the state of Rajasthan, India, accelerating their efforts to branch out into the world’s second most populous country.

The new manufacturing site marks the company’s 10th factory built abroad, following five in China, two in Vietnam and two in Russia.

The move will help cut down logistics costs as items, which have been previously imported from Vietnam, will be locally supplied in the country with a major confectionery market worth 17 trillion won ($15 billion), the company said.

“With the completion of the factory in India, we are speeding up the process to branch out into the emerging Indian market with a population of 1.3 billion people, a vast territory and great potential,” said one official at Orion.

“Using the know-how from other global markets such as China, Vietnam and Russia, we hope to create yet another K-food success story in the India market where global confectionery manufacturers compete fiercely,” the official added.

Orion built its first production line abroad in Langfang, China’s northern Hebei province in 1997 and began work on the construction of its new plant in India in 2019.

Over 65 percent of Orion’s sales are generated abroad now.

Thanks to its popular items such as Choco Pie and the company’s localization efforts, Orion’s corporate body in China witnessed sales grow by 12 percent on-year to post the highest sales of 1.09 trillion won, while the Vietnam corporate body broke a record with 292 billion won in sales in 2020, according to the company.

An opening ceremony of the new factory was held on Monday with Saurabh Saith, Chief Operating Office and Board Director at Orion India and Sukhbir Singh Mann, chairman at Mann Ventures.

Having a factory in India also means that selling fresh and localized products will also be possible, the firm explained.

Orion will focus on the production of Choco Pie, the company’s signature confection in its early days, with plans to expand its market presence by diversifying the range of items available to include other snacks and biscuits.

As India boasts one of the largest countries in the world with various cultures and ethnic groups, the company also announced plans to hire local staff to identify and satisfy the needs of the new market.

By Yim Hyun-su (hyunsu@heraldcorp.com)
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