CHOCOLATE SECTOR BITTER OVER MRP VALUATION
Article Abstract:
The profits of the chocolate sector may be affected with the Maximum Retail Price (MRP)-based valuation extended to the sector in all forms including drinking chocolates and preparations of malt, cereals, flour, starch or milk. The excise on these items will be calculated on 65 percent of their MRP in addition to the excise slab under which it falls. Apart from this, the realisation on Modvat on these products has been reduced by five percent from 100 to 95 percent. The MRP valuation is expected to hit most of the chocolate companies as very few companies are at 65 percent MRP. The raw material prices also will increase with eight percent import tax levied on cocoa. In 1997-98, the chocolate industry failed to record a growth and the food and drinks industry recorded a marginal five percent growth. (gsh)
Comment:
India: Profits of chocolate sector may be affected with Maximum Retail Price -based valuation extended to the sector
Publication Name: Economic Times
Subject: Business, international
ISSN: 0013-0389
Year: 1998
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CHOCOLATE MAKERS GIVING SWEET TOOTH TO BIG BOYS
Article Abstract:
The chocolate makers are now viewing the market from a different angle. Gauging the vast potential of the snack segment, they now want to introduce their snack foods targeted at a wider consumer base, including the youth. Cadbury has introduced Picnic as an in-between snack aimed at Uncle Chips and Pepsi markets. Pepsi Foods has entered the snack food segment with the launch of Lehar Namkeen. Nestle has triggered off Charge, a chocolate with nuts and crunch, as a snack item. Since biscuits are not considered as snacks by the youth, Britannia has introduced Checkers, a variety of wafer biscuit. The companies are all aiming at bringing out value added products. These are expected to improve the company's margins in the long run. (um)(psr)
Publication Name: Economic Times
Subject: Business, international
ISSN: 0013-0389
Year: 1999
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SAY CHEESE, CHOCOS TO YOUR PORTFOLIO: CABDURY INDIA
Article Abstract:
Cadbury India dominates the chocolate market in India with a 70 percent share. It plans to launch one major product each year and develop lower priced mass products. It derives 60 percent of its sales from chocolates, 15 percent from sugar confectionery and 25 percent from malted food drinks. It plans to launch three to four products every year from Cadbury Schweppes range of sugar confectionery products. It posted a net profit of Rs100 million and sales of Rs1,759 million for the half year ended June 20, 1998. For year ended December 1998, the company has targeted 17- 18 percent sales growth at Rs4190 million and a compounded annual growth rate of 20 percent over the next three years. (nr)
Publication Name: Economic Times
Subject: Business, international
ISSN: 0013-0389
Year: 1998
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