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Mondelez Pakistan, the local producer of the Cadbury chocolate brand, has announced plans to localise 50% of its current production by the end of 2025, up from the current 22% localisation level.

The company, a subsidiary of global snack giant Mondelēz International, will invest $5 million to achieve this goal, on top of the 55% of local materials it has been sourcing since establishing operations in Pakistan in 1992.

"Our goal is to enhance sustainability in Pakistan through localisation and boost exports," said Sami Wahid, managing director of Mondelēz Pakistan, during an interview with The News.

Faced with currency challenges last year, Mondelēz identified that 50% of its raw materials could be localized, with the exception of cocoa beans. The company has already localised 22% of its imports as of March 2024 and aims to reach the 50% target by 2025.

"Additionally, we are exploring ways to increase our exports from Pakistan to address the dollar liquidity crunch," Wahid added. "Our aim is to make our business sustainable under Pakistan's macroeconomic conditions."

Mondelēz Pakistan currently manufactures around 12 products locally, including its popular Cadbury chocolates and biscuit brands such as Oreo, Lu and Tuck. The company's international turnover stands at $36 billion.

The investment in localisation comes as Mondelēz seeks to enhance the sustainability of its operations in Pakistan and leverage the country's manufacturing capabilities to address currency challenges and boost exports.

Earlier this month, Mondelēz and Lotus Bakeries joined forces to boost the presence of the popular Biscoff cookie brand in India, and create new co-branded chocolate products in Europe.

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