Kraft Food to set up 100% arm for powder softdrinks

R Ravichandran

Hyderabad, Sept 17: The US-based Kraft Food International, part of the $35-billion tobacco major Phillip Morris and the world’s second largest food company, has proposed to set up a 100 per cent subsidiary to manufacture “powder softdrink.”

In its first investment in Hyderabad, the US multinational company is setting up a state-of-the-art plant in Pashamylaram industrial estate, 40 km from Hyderabad.

Kraft Food is the manufacturer of food products like cheese, chocolates, powdered softdrink, etc.

The new company, called KJS India Pvt Ltd, will manufacture powdered softdrink called Tang, with an initial investment of
Rs 40 crore, official sources told The Financial Express.

The project is expected to be inaugurated by Andhra Pradesh chief minister N Chandrababu Naidu on September 29 sources added.
The company has acquired 8 acres of land in the industrial development area (Phase II) of Medak district to manufacture the Tang powdered softdrink concentrate with an initial capacity of 6,000 tonne per annum, said the sources.

When contacted, the company’s senior officials said the work on the 100-per cent foreign direct investment project has been completed and commercial production is expected to commence in October this year.

According to the officials, the company would start with the Orange brand initially.

Originally, Tang softdrink concentrate was launched in India a few months ago by importing it from Thailand where the parent company has a plant.

“Having received good response during the short period, the Indian project is expected to give the company a push to easily penetrate into the market,” officials said. However, they refused to further elaborate on the project.

According to sources, the company is employing over 60 people initially and based on future expansion, employment generation would be enhanced.

The company has also made a provision for future expansion and also set up a separate R&D department inside the project site, sources added.