Synopsis: Manorama Industries helps global chocolate makers like Mars and Ferrero cut costs, ensure consistency, and meet growing demand by supplying cocoa butter equivalents (CBEs) and specialty fats. With a unique “Waste to Wealth” model, exclusive Sal seed sourcing, and expanded capacity, MIL supports sustainable, high-quality chocolate production worldwide.
Chocolate makers around the world are facing rising costs, unpredictable supply, and increasing regulatory pressures for one of their most essential ingredients. Maintaining quality while keeping products affordable has become a growing challenge for even the biggest brands. Yet, one company is helping chocolate makers worldwide cut costs, improve consistency, and meet growing demand, so how exactly are they doing it?
Problem In The Chocolate Industry
Chocolate ingredient makers face big challenges because cocoa prices are unstable and raw material costs keep changing. In 2023‑24, cocoa bean prices fluctuated between USD 2,400 and USD 4,200 per tonne, creating strong cost pressures for processors. Climate change in West Africa, which produces 70 percent of the world’s cocoa, adds to the uncertainty, affecting both availability and pricing.
Weather problems in Côte d’Ivoire and Ghana sometimes reduce supply, forcing processors to keep larger inventories and deal with more price swings. Smaller processors without strong sourcing networks or financial hedges are hit hardest. On top of this, currency fluctuations in producing countries, like the CFA franc and Ghanaian cedi, further increase costs because cocoa is traded internationally while production expenses are in local currencies.
Introduction To Manorama Industries
Founded in 2005, Manorama Industries (MIL) is a global pioneer in making specialty fats, butters, and other exotic products. The company specializes in Sal CBE & Stearin, Shea CBE & Stearin, Mango CBE & Stearin, and a range of other unique fats and butters. MIL provides tailor-made solutions to Fortune 500 companies in the chocolate, confectionery, and cosmetic sectors. With a strong focus on research and quality, its MILCOA Research & Development Centre holds multiple global certifications. Over the years, the company has received more than 50 international and national awards for its innovative business model, contribution to communities, and role in nation-building.
Why Manorama Industries’ Solution Stands Out
For chocolate makers, rising cocoa butter prices can create a big challenge, especially when producing large volumes of chocolate. The solution? Cocoa Butter Equivalents (CBEs). These alternatives mimic cocoa butter’s melting behavior and solid fat content, ensuring chocolates maintain the creamy, smooth texture consumers love. CBEs are typically made from a blend of vegetable fats such as palm oil, shea butter, and other tropical oils, carefully processed to match the properties of cocoa butter.
The Benefits of CBE
One of the biggest advantages of CBEs is cost savings. Cocoa butter prices can fluctuate sharply, making it hard for chocolate makers to keep prices stable. CBEs provide a more predictable and affordable option, allowing manufacturers to maintain quality while controlling costs. This ensures chocolates remain an accessible treat for consumers. CBEs do more than save costs, they improve product consistency. Chocolates made with CBEs deliver the same smooth texture and flavor in every bite, giving manufacturers confidence that each batch meets quality standards. This reliability makes CBEs popular among major chocolate brands.
CBEs can also extend the shelf life of chocolate. They reduce the risk of fat bloom, the whitish coating that sometimes appears on chocolate, helping products stay fresh longer. This reduces waste and keeps consumers satisfied. Using CBEs also helps reduce dependence on cocoa butter from sensitive ecosystems. By lowering demand for raw cocoa butter, CBEs promote more ethical sourcing and a more sustainable chocolate industry.
Growing Demand for CBEs
The global market for CBEs is expected to grow at a 6.3 percent CAGR, reaching USD 2.15 billion by 2033, driven by increasing use in chocolates, bakery items, spreads, and confectionery fillings. Chocolate demand itself is projected to grow at a 4.5 percent CAGR to USD 205.4 billion, fueled by consumer interest in premium, health-oriented, and ethically sourced products.
Manorama Industries’ Global Reach
MIL provides customized products like stearin, CBEs, and specialty fats to top brands in chocolate, confectionery, and cosmetics. Between FY20 and FY25, the company built strong relationships with global brands, gaining necessary product approvals and annual contract renewals. Its clients include Ferrero, The Body Shop, Mondelez, Nestlé, and Hershey’s.
Around 73 per cent of MIL’s FY25 turnover (up from 57 per cent in FY24) came from exports, with sales to international markets growing. MIL serves over 20 countries, including Russia, Malaysia, the UAE, Spain, and Turkey. Its domestic customers are mostly multinational companies, many of them global brands.
To meet rising CBE demand, MIL has significantly expanded its fractionation capacity, tripling from 15,000 MTPA to 40,000 MTPA between 2022 and 2024. A new 25,000 TPA unit was commissioned in July 2024, ensuring the company can grow without production bottlenecks.
The Unique Sal Seed Advantage
MIL’s access to Sal seeds gives it a unique edge that competitors cannot replicate. Sal trees grow only in Indian forests, and MIL’s 40-year procurement network provides exclusive access to this raw material. Competitors using shea nuts cannot match the unique triglyceride profile of Sal-based CBE without building a similar Indian sourcing network, a process that takes decades.
Entry barriers are reinforced across multiple areas. Building village-level collection networks requires 15+ years of relationship development. Customer qualification takes 3-4 years. Regulatory approvals across different countries involve extensive documentation. Specialised expertise in fractionation chemistry is also essential, making MIL’s position highly defensible.
Manorama Industries’ “Waste to Wealth” Model
Manorama Industries runs a unique “Waste to Wealth” business, turning tree-borne seeds into high-value products for the food, chocolate, confectionery, and cosmetic industries. The company sources exotic seeds from India, including Sal, Mango, Kokum, and Mowrah, and from Africa, mainly Shea nuts. These raw materials are transported to their advanced processing facility in Raipur, where they are processed into cocoa butter equivalents (CBEs), specialty fats, and butter. Even the leftover de-oiled cake is sold to the Indian cattle feed industry, creating an extra revenue stream.
MIL relies on a well-established supply chain that engages tribal communities for seed collection. In India, tribal women gather Sal seeds from forest floors, pre-clean and deshell them, and send them to purchase centers. In Africa, local tribes pick Shea nuts, which are boiled, cleaned, and processed by Manorama Africa before shipment to India. This approach ensures a steady supply of raw materials while supporting local communities, highlighting the company’s commitment to sustainability and social responsibility.
After processing at the Raipur facility, MIL supplies CBEs and specialty fats to global Fortune 500 companies in the food, chocolate, and cosmetic industries. Its products are highly valued for quality and consistency, making MIL a trusted supplier for major multinational brands. The Raipur plant’s location near Visakhapatnam port also streamlines imports of Shea nuts from Africa, enhancing logistics and supply chain efficiency. This end-to-end model, from sourcing seeds to global sales, allows MIL to produce high-margin products while ensuring ethical sourcing and sustainable practices.
Working Capital and Inventory Management
The company’s operations are working capital-intensive because of long inventory holding periods. MIL maintains high raw material inventories due to seasonal availability: Sal seeds and Mango kernels are generally collected between May and July, while Shea nuts are sourced from October to February. Finished goods inventory is also maintained to ensure timely delivery to customers. At FYE25, MIL’s raw material inventory was around Rs. 4,000 million (up from Rs. 2,241 million in FYE24), and finished goods inventory was Rs. 1,505 million (down slightly from Rs. 1,652 million). The higher raw material stock is also due to meeting volume requirements for FY26, the first full year of operations with the expanded fractionation capacity.
Raw Material Sourcing and Risks
MIL procures seeds from forests across Chhattisgarh, Jharkhand, Odisha, parts of Madhya Pradesh, and West Africa. The company depends heavily on local tribal communities for spot sourcing. This makes MIL vulnerable to risks such as poor climatic conditions, changes in government regulations, or delays from local suppliers. Any disruption in raw material supply could affect production schedules and customer deliveries, potentially impacting the company’s financial performance.
The Impact On Chocolate Makers
Rising global cocoa prices, currently around USD 8,000 to 10,000 per tonne compared with historical averages of USD 2,500-3,000, have created major challenges for chocolate makers. Factors such as aging cocoa trees, climate changes, and disease affecting 81 percent of Ghana’s crop have tightened West African supply.
Cocoa Butter Equivalents (CBEs) offer chocolate manufacturers 30-40 percent cost savings while maintaining the same taste, texture, and functional qualities as cocoa butter. European regulations allowing up to 5 percent vegetable fat in chocolate and the EU Deforestation Regulation, which adds roughly 4 percent to cocoa costs through compliance, make CBEs even more economically attractive. As a result, chocolate makers increasingly see CBEs not just as a way to cut costs but as a means to improve operational resilience.
Rising chocolate consumption in emerging markets, including India, China, and Southeast Asia, is driving demand for temperature-stable specialty fats that can withstand tropical climates. Manorama Industries’ heat-tolerant CBE products are designed specifically to meet this growing need, helping chocolate manufacturers deliver high-quality products efficiently across hot and challenging markets.
In simple terms, Manorama Industries plays a quiet but important role in the global chocolate industry. As cocoa prices rise and supply becomes more uncertain, chocolate companies need reliable, affordable, and high-quality alternatives. Manorama’s cocoa butter equivalents help brands like Mars, Ferrero, and Mondelez save money without compromising on taste or texture.
Beyond cost savings, the company’s “Waste to Wealth” model supports tribal communities, reduces agricultural waste, and promotes more sustainable sourcing. Its unique access to Sal seeds, strong R&D, and expanded manufacturing capacity give it a lasting competitive edge.
Overall, Manorama Industries is not just a supplier, but a strategic partner to global chocolate makers, helping them manage risks, control costs, and meet growing consumer demand in a changing world.
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