The upcoming facility aims to manufacture Pillsbury baking mixes specifically for the local market, and it is projected to commence operations by August of the following year.
The upcoming facility aims to manufacture Pillsbury baking mixes specifically for the local market, and it is projected to commence operations by August of the following year.
General Mills has revealed its intentions to construct a second Pillsbury baking mixes plant in India, effectively doubling its production capacity within the country.
The American food giant recently conducted a groundbreaking ceremony for its new plant, situated in Nashik city within the state of Maharashtra.
This new facility is set to manufacture Pillsbury baking mixes catering to the local market, and it is anticipated to commence operations by August of the upcoming year.
General Mills has committed to investing around Rs1 billion (equivalent to $12 million) in the construction of this new factory.
The company has affirmed that this investment aims to meet the rising demand for its Pillsbury bakery solutions in India, a market that is considered pivotal to the group’s global growth strategy.
Anand Khurana, who serves as the country director for General Mills’ business in India, remarked, “The bakery industry in India is experiencing remarkable growth.”
“The establishment of this new facility underscores Pillsbury’s dedication to serving a broader community of bakers in India and bolstering their business expansion,” said Khurana.
Balki Radhakrishnan, Vice President and Managing Director of Global Emerging Markets at General Mills, emphasized that India holds a prominent position among the group’s priority markets worldwide.
“In recent years, our business in India has consistently witnessed accelerated growth, and the new manufacturing plant reaffirms our commitment to expanding in India by satisfying a larger consumer base and addressing their evolving needs,” Radhakrishnan remarked.
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General Mills’ India operations are headquartered in Mumbai. The company currently operates three sales offices, two manufacturing plants, an R&D lab, and boasts 17 Häagen-Dazs shops across the country. With over 550 employees, General Mills has a substantial presence in India.
In the fiscal year ending on May 28, General Mills’ international business, excluding North America, experienced a 16% decrease in net sales, amounting to $2.8 billion. This decline in net sales was primarily attributed to a 28% drop in volumes, partially due to business disposals and a recall of ice-cream products. Additionally, exchange rates contributed to a 5% reduction in net sales. However, General Mills noted that organic sales showed a positive trend, increasing by 5%.
The operating profit registered a decline of 30%, amounting to $162 million, or a 25% decrease when adjusted for constant currency fluctuations. This drop was primarily driven by increased input costs and a reduction in volumes.
The group’s net sales exhibited a growth of 6%, reaching $20.1 billion. When considered on an organic basis, net sales showed a more modest increase of 1%.