Maybe Sr. Pagani can put India on his itinerary next time. There’s profit in catering to the sweet tooth of Indians. Indian sweets like gulab jamuns go waaaaaaaaaaay beyond any sweetness index conceived.
Latin Business Chronicle
Argentina is well known for its beef but less so for its candy. Yet it is home to one of the world’s leading confectioners. Ranked 143 on Latin America’s Top 500 Companies from Latin Business Chronicle, Argentine candy and food group Arcor is going global. Its 2007 world-wide revenues reached $1.8 billion, an increase of 20 percent from 2006. Net income grew by 19 percent to $62.2 million.
The majority of sales were generated within Argentina but with $245 million emanating from other Latin American countries and another $65 million from the rest of the world.
Already ensconced in the U.S. market through manufacturing deals with Wal-Mart, Sara Lee and Brach’s Confections, Arcor is beginning to look east. President and CEO Luis Pagani, son of Arcor’s founder, spent 40 days last year exploring the markets of China, Vietnam, Thailand, Malaysia, and Korea.
It’s only a matter of time before they run hotels in Buenos Aires, Sao Paulo and Mexico City.
The Taj Group of Hotels, owned by the Tata Group, is foraying into high-end business and luxury segments globally. “Spas have EBITDA margins as high as 30 per cent, making them highly lucrative,’’ Amol Rao, a hotel analyst at Pioneer Multimedia, said.
Taj has entered business gateways such as New York, Boston and Sydney, whereas Taj Resorts and Spa is concentrating on leisure travel in exotic destinations including Phuket, Doha and Saraya islands of UAE. It is either purchasing the properties on an outright basis, as was the case with the New York and Boston properties, or getting into managing contracts for running the businesses.