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Friday July 19, 2024

Mondelez to invest $5 million to enhance localization in Pakistan

By Shahid Shah
June 20, 2024
Mondelez International logo and stock graph are seen displayed in this illustration picture. — Reuters/File
Mondelez International logo and stock graph are seen displayed in this illustration picture. — Reuters/File

KARACHI: Mondelez Pakistan Limited, local producer of the famous chocolate brand ‘Cadbury’, has announced plans to localize current production by 50 per cent, with 22per cent already localized, by the end of 2025.

Mondelez is going to invest $5 million in the process. This will be in addition to the 55 percent purchase of local materials since the company’s existence in Pakistan in 1992.

In his statement to The News, Managing Director of Mondelez Pakistan Limited Sami Wahid said that the company’s goal is to enhance sustainability in Pakistan through localization and boost exports.

Mondelez Pakistan, a subsidiary of Mondelez International, is a leading snack maker in the country, producing popular brands like Cadbury and biscuits such as Lu. The company is currently manufacturing around 12 products locally.

He said that last year, faced with currency issues, they identified that 50 per cent of their materials could be localized adding that Cocoa beans are among the items that cannot be localized. “We have already localized 22 per cent of our imports as of March, with plans to reach 50 per cent by 2025,” he said. “Additionally, we are exploring ways to increase our exports from Pakistan to address the dollar liquidity crunch. Our aim is to make our business sustainable under Pakistan’s macroeconomic conditions.”

He said, “Our chocolate portfolio includes Cadbury, and our biscuit brands include Oreo, Lu. and Tuck, among others, totalling 12-14 brands. We are one of the biggest snack producers with $36 billion in international turnover.”