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Perfetti India: GST Boost Fuels High Double-Digit Growth
25 Apr
Summary
- GST reduction to 5% significantly boosted confectionery industry growth.
- Perfetti India aims for ₹4,000 crore turnover this year, doubling in four years.
- Premium products priced at ₹5 and above now contribute 30% to the portfolio.
Perfetti Van Melle India is experiencing significant growth, reporting high double-digit increases in the past six months. This surge is largely attributed to the Goods and Services Tax (GST) reduction to 5%, which has been a considerable benefit to the confectionery sector. The lower GST rates have not only boosted consumption but also made cost structures more conducive for introducing new innovations.
The company is actively pursuing a premiumisation strategy, with products priced at ₹5 and above now accounting for 30% of its portfolio. Perfetti Van Melle India aims to increase the revenue share of these premium offerings to 50%, focusing on expanding the availability of ₹5, ₹10, and ₹20 products across its extensive distribution network of 1.1 million outlets. Key brands like Chupa Chups and Mentos are central to this premiumisation drive.
Looking ahead, Perfetti Van Melle India has ambitious revenue targets, aiming to reach ₹4,000 crore turnover this year and double that figure within approximately four years. While cost pressures exist, the company is focused on leveraging the current consumption spurt. Despite potential impacts on profitability due to rising costs, the company anticipates positive momentum for the remainder of the year. Global power brands like Chupa Chups and Mentos, alongside homegrown successes such as Center fresh and Happydent, are driving this expansion.
