ITC Ltd plans to double Fabelle’s manufacturing capacity in 15–18 months and expand its retail footprint over 2–3 years, per The Hindu BusinessLine. Currently produced in Haridwar and Bengaluru, 80% of Fabelle’s portfolio is handcrafted. Luxury chocolate in India—valued at ₹1,000–1,200 crore—is growing nearly twice as fast as the ₹22,000-crore overall chocolate market. E-commerce accounts for nearly 50% of sales, and 35–40% of demand now comes from non-metro markets. Boutiques are transforming into mini chocolate cafés, enhancing brand experience.
According to www.thehindubusinessline.com, ITC Ltd plans to double the manufacturing capacity of its luxury chocolate brand Fabelle within the next 15–18 months. The expansion coincides with a broader push to scale the brand’s retail footprint over the next 2–3 years, as Indian demand for premium confectionery accelerates.
Current Production and Strategic Expansion
Fabelle, launched in 2016, currently operates production across two key facilities—in Haridwar and Bengaluru. As stated by Subash Balar, Vice President and Business Head – Chocolates, Coffee and Confectionery & NCD, Foods Division, ITC Ltd:
“Fabelle’s production is currently anchored across our two key facilities in Haridwar and Bengaluru. Nearly 80 per cent of the portfolio is handcrafted by our master chocolatiers. We aim to double the manufacturing capacity of the brand over the next 15–18 months. We see strong potential for the brand as luxury chocolate segment in India is growing at nearly double the pace of the overall chocolate sector.”
Retail Footprint and Channel Strategy
The brand currently operates 14 boutiques at ITC Hotels and three outlets at Bangalore Airport and malls. Its expansion plan includes opening new outlets in malls and larger retail spaces across key metros, alongside growth in modern trade channels. According to the source, Fabelle boutiques are evolving into mini chocolate cafés—serving as experiential brand centers.
E-commerce and quick-commerce now drive nearly 50 per cent of Fabelle’s business. The source states that luxury chocolates are increasingly perceived as an ‘everyday indulgence’, with rapid consumption growth fueled by quick-commerce platforms. Additionally, non-metro markets contribute 35–40 per cent of current demand—a notable shift indicating broadening geographic reach beyond Tier-1 cities.
Product and Market Context
The Indian chocolate market is valued at approximately ₹22,000 crore, while the luxury chocolate segment stands at an estimated ₹1,000–1,200 crore, according to the report. This niche is expanding rapidly, outpacing the broader category. ITC’s move aligns with wider industry trends: global luxury FMCG players—including Ferrero, Lindt, and Godiva—have recently increased local manufacturing or distribution partnerships in India to capture rising discretionary spending. Meanwhile, domestic competitors like Amul and Nestlé have also introduced premium sub-brands, though none yet operate dedicated luxury chocolate boutiques with integrated café experiences. For supply chain professionals, this signals intensified requirements for temperature-controlled logistics, artisanal labor integration, agile small-batch production planning, and omnichannel inventory synchronization—especially given the dual emphasis on handcrafted quality and rapid e-commerce fulfillment.
Source: www.thehindubusinessline.com
Compiled from international media by the SCI.AI editorial team.
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