South Korean confectionary giant Orion Corp. famous for Choco Pie has embarked on the construction of its first Indian snack manufacturing factory that will be run jointly by local processed food maker Mann Ventures.

Orion said Wednesday that it broke ground for a food processing plant on a 17,000-square-meter site owned by Mann Ventures in Rajasthan, northwestern India, to finish its construction by June 2020. At the plant, Mann Ventures will manufacture Orion’s snacks under consignment. The financial details of the new plant are undisclosed.

The Korean confectionary company set up a subsidiary in India, named Orion Nutritionals, in October last year and selected Mann Ventures as its contract manufacturer in the country. Founded in 1989, Mann Ventures is one of India’s leading processed food manufacturers that offers manufacturing and packing services to multinational companies.

Orion said Mann Ventures will make its snacks to be sold in India, while it oversees sales, marketing, and product management. Orion also plans to recruit an expert in Indian snack market as a chief operating officer for its local Indian subsidiary, which is slated for official opening next month.

The company estimates the current Indian confectionary market at 11 trillion won ($9.8 billion) with a prospect to grow more than 10 percent per year on average over the next five years.

By Lee Duk-joo and Cho Jeehyun

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