Changes at the top amidst turmoil

Manu Anand, former Chairman and CEO, PepsiCo India, has joined choclate maker Cadbury India as Managing Director and Mondelez International (Cadbury Kraft) as President, India and South Asia. Mondelez International is a global snacking company, with revenues of $35 billion in 2012. Among its notable brands are Cadbury Dairy Milk, Oreo biscuits and Tang beverages. Anand joins Cadbury India in the wake of a top level management rejig at the company, which has been facing charges of excise duty and tax evasion. The company allegedly misled the Indian excise department on a plant set up in Baddi, Himachal Pradesh in 2009 in an attempt to evade taxes and benefit from duty and tax waivers. If this allegation is proved by the Directorate General of Central Excise Intelligence in their investigation, Cadbury will have to pay Rs.5 billion in unpaid taxes, penalties and interest from 2010 onwards. The company is also alleged to have paid up to Rs. 200 million in bribes to various state government officials to obtain permissions for this unit. This case was probed by the US Securities and Exchange Commission under the Foreign Corrupt Practices Act, but the details of the investigation have not been made public as yet. In India, Cadbury is a dominant player with over 65% share in the chocolates category. Last year, the firm’s revenues went up 20.8% to Rs. 40.65 billion.