Orion Officially Enters India Market, the World's Second Most Populous Country

India, 10th Overseas Production Base
Entering the 17 Trillion Won Confectionery Market

Orion India factory exterior. (Photo by Orion)

[Asia Economy Reporter Seungjin Lee] Orion is making a full-scale entry into the Indian market, the world's second most populous country with a confectionery market worth approximately 17 trillion won.

On the 23rd, Orion announced that it held a completion ceremony at the Orion India factory located in Rajasthan, India, and began product manufacturing.

The completion ceremony held on the 22nd was attended by Saurabh Saith, CEO of Orion India, and Sukhbir Singh Mann, chairman of Mann Ventures, a production management company.

The Orion India factory is the 10th overseas production base following China (5), Vietnam (2), and Russia (2). By directly sourcing the distribution volume for India, which was previously imported from Vietnam, from the India factory, Orion has been able to reduce logistics costs, sell fresh products, and offer optimal products tailored to local consumer tastes.

Considering the characteristics of the Indian market, Orion signed a production management contract with the local manufacturer Mann Ventures and began construction of the factory in 2019. To maintain the highest product quality, Orion chose a method where Mann Ventures is responsible for production at the factory and facilities established by Orion. Accordingly, Mann Ventures will be fully responsible for production going forward, while Orion will oversee all processes except production, including product management, sales, and marketing.

Since India is a market with diverse ethnicities, cultures, and a vast territory, Orion plans to hire mostly local employees to accurately understand and satisfy local demand.

Initially, Orion will focus on producing Choco Pie, which has strong brand power based on global product quality and recognition, and plans to expand product lines such as biscuits and snacks to increase local market share. Along with this, Orion aims to strengthen sales through large supermarkets and e-commerce centered on metropolitan areas with high income levels to target the premium market, while also targeting small traditional channels based on the success know-how from China and Vietnam.

Since establishing its first production facility in Langfang near Beijing, China in 1997, Orion has actively expanded overseas production bases, operating a total of nine local production facilities in Shanghai, Guangzhou, Shenyang, Ho Chi Minh City, Hanoi, Tver, and Novosibirsk, Russia. Last year, Orion's overseas sales accounted for more than 65% of its total sales, achieving significant results in the global market.

An Orion official said, “With the completion of the India factory, we have stepped on the accelerator to pioneer the new Indian market, which has a population of 1.3 billion and vast territory with unlimited potential. Based on the know-how accumulated in global markets such as China, Vietnam, and Russia, we will create another K-food success story in the Indian market, where leading global confectionery companies are fiercely competing.”

This content was produced with the assistance of AI translation services.