Mondelez to Invest $5 Million to Boost Local Production in Pakistan-2024!

Summary: Mondelez Pakistan Limited, the company behind popular brands like Cadbury, plans to invest $5 million to increase local production. They aim to localize 50% of their production by the end of 2025. This move is part of their strategy to enhance sustainability and boost exports amid economic challenges in Pakistan.

Investment and Localization Plans

• Investment Amount: $5 million.
• Goal: Localize 50% of production by 2025.
• Current Progress: 28% localization has already been achieved as of March.

Company Background

• Parent Company: Mondelez International.
• Operations in Pakistan: Since 1992.
• Products: Famous for Cadbury chocolates, it also produces brands like Oreo, Lu, Tuck, and Lays.
• Local Production: Manufacturing around 12 products locally.

Strategic Goals

Increasing Localization

• Challenges: Faced with currency issues, Mondelez identified that 50% of their materials could be sourced locally, excluding items like cocoa beans.
• Current Status: 28% of imports have been localized.
• Future Target: Achieve 50% localization by the end of 2025.

Enhancing Exports

• Objective: Increase exports to help with dollar liquidity issues.
• Sustainability: Aim to adapt to Pakistan’s macroeconomic conditions by boosting local production and exports.

Statements from Management

• Sami Wahid, Managing Director:
• Emphasized the focus on sustainability through localization.
• Mentioned ongoing efforts to explore export opportunities to address economic challenges.

Product Portfolio

• Chocolate: Includes Cadbury.
• Biscuits: Includes brands like Oreo, Lu, Tuck, and Lays.
• Market Position: One of the leading snack producers with a $37 million international turnover.

Conclusion

Mondelez Pakistan’s investment in local production aims to create a more sustainable and resilient business model by 2025. This initiative is expected to reduce dependency on imports, increase local employment, and enhance export potential, aligning with the company’s strategy to adapt to Pakistan’s economic landscape.

References

• The News, June 2024.
• Statements from Mondelez Pakistan Management.

Mondelez’s commitment to local production and export enhancement marks a significant step toward sustainable growth in the Pakistani market.

nmshah.virgo

I am an Post Graduate and a passionate Blogger, who loves to share tips on Blogging, Digital Marketing, Passive Income along-with Finance Tax Budget and ERP and also interested in daily news updates with passion and consistancy.