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Challenges
- With annual revenue of €300 million (2018) and 75 per cent of its sales outside of France, global markets play an instrumental role in Monin’s growth. For the company, expansion into a high-growth market was strategic.
- In 2016, Monin was ready to take the next step in India after several years of successfully exporting its products in the country.
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Solutions
- Monin turned to Altios due to the firm’s knowledge and experience in India. Thanks to Altios, the company determined that the best entry-point was the creation of a subsidiary and a production facility in India.
- First, Altios advised on the best options for manufacturing its products in the country. Monin could either acquire an existing manufacturer, co-pack or build a new facility. Monin finally decided to set-up a manufacturing site to ensure the high-quality standards of their brand, close to its customers.
- The Altios team researched the best regions for the site. Altios and Monin visited multiple locations across India. They evaluated them based on several factors, including access to raw materials, roads, and, labour, as well as, taxes, local laws, and investment incentives that differ by state.
- Altios worked with local governments, and assisted in subsidiary incorporation, management, and expansion of the Monin India team.
- The two-fold solution meant that Monin could adapt its flavours to the Indian market while ensuring product quality.
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Results
- Local knowledge is particularly important in India due to the unique business finance laws of the country. New incorporations are required to plan their finance needs three to four years in advance. The Altios team in India provided an accelerated direct investment in the complex market of India through local recruitment of talent and creation of a subsidiary.
- Monin India Pvt. Ltd. officially incorporated in February 2019. The company aimed to commission its Make-in-India Phase 1 factory by 2021.
- “The value-added of Altios to Monin is our local footprint and knowledge,” said Praveen Singha Director of Altios India. “Working on the ground in India, we know legal and administrative regulations, and social and political nuances”.
- In-country manufacturing facility ensures Monin’s standards of high-quality products, and local flavour creations are maintained. Germain Araud of Monin said Altiosʼ local presence and network allows them to be closer to their customers, and to keep them in mind throughout the expansion process. “Today, customers want natural products, and they pay attention to where ingredients are sourced,” said Araud.
Learn more about Monin: https://www.monin.com/fr/
Learn more about your market entry in India: https://www.maiervidorno.com/market-entry-expansion
