The facility will manufacture flavours for the confectionery and biscuits industry, as well as fragrances for the perfume and cosmetics industries. The facility will serve the Indian market and also neighbouring countries such as Sri Lanka and Bangladesh.
The plant is part of the company’s expansion plans for India, especially with the food processing industry in India being one of the largest in terms of production, consumption and import. Chennai was chosen for the company’s latest facility due to its strategic location, the city’s good relations with Japan and its large pool of local talent.
The food industry is currently valued at US$39.7 billion and expected to grow at a compounded annual growth rate of 11 percent to US$ 65.4 billion by 2018. Food and grocery account for around 31 percent of India’s consumption, which is higher than any category including housing.
The Indian government’s favourable policy for the food industry and the strong demand by the growing middle class with disposable incomes offers significant investment opportunities for companies in the food and flavour markets.