Chocolate giant Hershey may enter India with a 51 per cent stake in Godrej Foods

Mumbai: Chocolate and confectionery maker, The Hershey Company is said to be entering the Indian market by acquiring a stake in Godrej Beverages and Foods (GBFL).

Sources said Hershey's had acquired a 51 per cent stakes in GBFL, by buying the 40 per cent stakes held by IL&FS. The remaining stake is expected to be acquired from Godrej Industries and A Mahendran, managing director, GBFL, who holds a stake in the company. After the acquisition, Mahendran and Godrej Industries' stake in GBFL will together come down to 49 per cent.

GBFL, with a turnover of about Rs 400 crore, is present in categories like juices, soya foods, tomato puree and bakery fats with brands such as Sofit, Xs and Jumpin. GBFL's acquisition of confectionery brand Nutrine has given it a significant presence in the confectionery category in India. Post acquisition, Hershey's is likely to tap this distribution network to introduce its own brands in India.

The US accounts for almost all of Hershey's sales which have been slowing down in the past couple of years. Some of Hershey's best known brands are Hershey's, Reese's, Hershey's Kisses and Ice Breakers. Apart from this, it also has a presence in categories such as chocolate drink mixes, baking ingredients, dessert toppings and beverages.