Confectionery major Perfetti Van Melle India—best known for brands such as Chupa Chups, Alpenliebe and Mentos—is aiming to double its turnover from around Rs 4,000 crore to about Rs 8,500 crore within four years, MD Nikhil Sharma told FE.
India remains a key market for the Netherlands-headquartered parent company. The country ranks among its top four markets globally by revenue and is the largest by volume.
Strategic Shift
Sharma said the plan to double topline growth will rely heavily on expanding distribution at higher price points such as Rs 2, Rs 5 and Rs 10. These currently account for 30% of the business. Meanwhile, 70% still comes from Rs 1 products—a mainstay for the confectionery category, but one he notes is not sustainable going forward.
“We sell nearly Rs 2,000 crore worth of Rs 1 gums. If we can replicate those interactions with Rs 5 or Rs 10 jelly bags, turnover will more than double. For us to reach the next level will require that we get more higher price-point products into outlets,” he said.
Sharma also hopes to shift family purchasing behaviour toward larger packs, leveraging e-commerce and quick commerce to do so. This push, he explained, will help increase the company’s online contribution, which currently stands at just 2.5% of total sales. Offline distribution remains robust, with Perfetti reaching nearly 5.5 million outlets—1.2 million serviced directly and the remaining 4.3 million through indirect distribution.
“Globally, confectionary products are part of the family grocery basket. But India is 90% impulse. Children often finish the candy before reaching home. That makes long-term basket influence harder, but also more important,” he says.
Innovation and GST Reform
The company plans to expand its flavour range, double down on jellies as a format, explore introducing a new global brand in the ‘good-for-you’ segment, and invest in heat-resistant formulations to improve product longevity. Sour profiles, masala notes and ethnic flavours are among the directions it is backing to fuel innovation.
Sharma added that the company has implemented grammage increases on Rs 1 products to pass on GST 2.0 benefits to consumers, with the higher-weight packs already entering the market. “You can’t just press a button to increase grammage. You need to change machine parts, packaging specifications, order new materials and absorb the cost and time that go with it. A few months after the September reform, we’re about 90% through the transition,” he said.
He also expects competition in confectionery to intensify with the GST 2.0 reforms. “Lower GST will help smaller players to expand because their innovation and freight costs will reduce. Going forward, we expect more sub-categories and more regional players in confectionary,” he said.