Fabelle ready to expand into modern trade; to set up new factory

Fabelle, a premium chocolate brand of ITC Foods, is set to scale operations with expansion across manufacturing and retail footprints.

The brand has seven boutiques across India. Housed within ITC hotels, these boutiques have a live dessert counters as well as over-the-counter products, and cater to a niche market.

Going forward, the company plans to open up its market by entering the high-street retail format. "Fabelle is all about the experience. We are ready to take it to the market in a more expansive way now. The first cafe in Delhi will soon be ready for launch, while Bengaluru will get the next one by next year," said Hemant Malik, Divisional Chief Executive, ITC Foods Division.

Further, the company is also planning to enter the modern trade retail space, considering the scope and potential of the Indian chocolate market. According to Mintel, the country's chocolate market is set to grow at 160% to touch Rs 32,000 crore by 2020, from Rs 12,000 crore in 2015.

"We are looking at moving into the packaged chocolate (FMCG) space. We are working on it with a dedicated team focusing on product development and packaging. In the case of this format, maintaining temperature is a challenge," he said, adding that the move is due in 2018.

To support these plans, ITC Foods is setting up its second factory for Fabelle in Haridwar. As of now, it has one factory in Hoskote. Earlier this month, ITC had announced that it will be investing Rs 10,000 crore in food processing over the next 5-7 years.