The Cadbury block, which is advertised as being "the first bar with dark, blended, milk and white, united in one bar" was received warmly by some, who called the move "meaningful marketing".
The bar and its packaging were featured on the local cover of The Economic Times.
But over the past few days, criticism has grown online, as people speak out against the company's attempt to promote diversity with chocolate.
Some have urged Cadbury to "stay out of politics", with others asking what chocolate has to do with the issue.
One Twitter user vowed never to buy from them again.
"Most people don't like this from the companies they buy products from. I, for one, will not buy your products anymore b/c of the virtue signalling."
Another wrote: "Can't decide which snark to go with. A joke about about flimsy corporate attempts to cash in on diversity or an observation that nobody would choose this bar over a solid one of their preferred type of chocolate."
News.com.au has reached out to Mondelez, the parent company of Cadbury, for comment on the reaction.
Cadbury has previously addressed the issue of online trolling after the company was harassed over incorrect claims it had ceased making Easter eggs.
The company was accused of carrying out a "war on Easter" online and eventually undertook a campaign to respond to trolls with a bespoke "togetherness" symbol.
Over the Easter period, Cadbury Australia responded to the online attacks with an image of the symbol, along with a brief message promoting "togetherness".
Cadbury has been selling Easter eggs and other chocolate products for more than 100 years.
