Irish dairy cooperative Kerry Group has officially inaugurated its new state-of-the-art, €20 million production facility in India, marking its fourth significant investment in the country. The move seeks to serve Kerry Taste & Nutrition’s global and regional customers in the South West Asia region, with Kerry Taste and Beverage systems for the fast-growing retail and Foodservice markets.

The production facility supports 150 new jobs in factory management and production, with further expansion and an additional 150 jobs planned when running at full capacity in the future. Kerry previously reported strong 2019 growth in the APMEA Region, noting 9.3 percent volume growth, with a strong performance in Meat, Beverage and Snacks EUMs, based on the first quarter of 2019. The Beverage EUM performed very well, particularly in the Foodservice channel as customers continue to broaden their menu offerings to target new and evolving consumption occasions.

“Our Tumkur facility will enable Kerry to offer a broader range of technologies, and more comprehensive scientific research and innovation and application expertise across Kerry’s Taste & Beverage Systems, to our customers with unrivaled speed,” says Scott Scharinger, Kerry’s VP and General Manager, South West Asia.

“This is Kerry’s fourth investment in India over the past number of years; which is testament to our continued focus on developing markets such as India, which is fast becoming one of our biggest growth opportunities,” Catherine Keogh, VP Corporate Affairs and Communications, Kerry Group, tells FoodIngredientsFirst.

The move follows Kerry’s reported “solid” start to 2019, with its business performance falling in line with expectations for the first quarter. The company reported a 10.3 percent increase in revenues in the first three months of the year. Business volume growth was +3.3 percent, with a Taste & Nutrition growth of +3.8 percent, compared to +0.8 percent for Consumer Foods. The group has also reaffirmed its full-year 2019 guidance of adjusted earnings per share growth of 6 percent to 10 percent on a constant currency basis. 

“The growth behind Kerry’s functional health and wellness ingredients is largely driven by consumer demand, as consumers increasingly take steps to support their health through their diet proactively,” Catherine Keogh, VP Corporate Affairs & Communications at Kerry, tells FoodIngredientsFirst. “We know that innovation and product success starts with formulating products with science-backed ingredients and we see growth opportunities in working with innovative customers in this expanding health and wellness space.” 

Supporting sustainable productions
The Tumkur facility also supports Kerry’s ambition for sustainable production. The site is equipped with energy efficient LED technology and maximizes natural light to reduce energy consumption. Utilities make use of solar power, and the site has been constructed with the capacity to deliver more of its future energy needs from renewable sources.

Water harvesting measures reduce water intake and the facility will deliver significant water efficiencies, with wastewater treated and re-used on site to achieve zero liquid discharge. The site also operates as zero waste to landfill, with waste volumes segregated and sent for recycling and recovery of resources.

The new site was officially opened by Irish Ambassador to India, Brian McElduff this morning, who reinforced Kerry’s commitment to the South West Asia region. According to Ambassador McElduff, “The investment serves as a welcome vote of confidence in India, and further supports growing business relations and bilateral trade between the two countries.”

In March, Kerry celebrated a US$65 million expansion in savory capabilities at its Taste Center of Excellence in Clark, New Jersey. Already home to Kerry’s Sweet & Natural Extracts Center of Excellence, the new Savory Center of Excellence expands the development and manufacturing competencies for Kerry on the East Coast. 

Edited by Laxmi Haigh