Danone India Pvt. Ltd. to ramp up its India Business, seeks to grow its portfolio in India

India: Danone India Pvt. Ltd. is planning to grow its portfolio in India. The company is a maker of yogurts and Farex baby food, and has its presence in 200 cities which is mainly operated through indirect network of the stockists and distributors. The dairy business of the company has grown in 20 cities and out of which in 6 cities the company has its fresh dairy business and has its owns trucks and the company controls its overall supply chain. 

 

Danone’s dairy business is one of the iconic business brand in France and many other countries across the world, but the business is relatively small in India as compared to other countries and this is the reason why company is planning to ramp up its presence. The company’s fresh dairy business share in modern trade, outlets and general stores is around 25-40% out of the yoghurt category, and the future plans of the company are to expand the dairy business and by expanding the portfolio. The company is also looking to expand company’s footprints into neighbouring countries including Sri Lanka, Nepal and Bangladesh. Danone has its milk collection system and works with the farmers and company has also invested in milk coolers and has set up its cold chain distribution network.

 

According to TechSci Research, India is a strategic market for dairy business and has highest potential to grow up in the coming years. Due to continuously increasing population in India the demand for the milk and dairy products is increasing which is pushing the dairies to expand their milk operations in order to meet the demands. Companies are opening such factories which are equipped with modern facilities so that they can offer value added products to the consumers. The companies in order to maximise the profits should offer dairy products which are different from the regular dairy products.

 

According to a recent report published by TechSci Research, “India Dairy Products Market Forecast and Opportunities, 2011 – 2021”, the market for dairy products in India is projected to grow at a CAGR of over 7% during 2016 - 2021. In 2015, North India dominated the country’s dairy products market, on account of increasing per capita expenditure, rising youth population, introduction of value added dairy products, changing consumption patterns, and growing penetration of international players. India dairy products market is witnessing a shift towards healthier products such as probiotic drinks, yogurts, etc. Few of the leading players operating in India dairy products market include Gujarat Cooperative Milk Marketing Federation Ltd., National Dairy Development Board, Karnataka Cooperative Milk Producers Federation Ltd., and Tamil Nadu Co-operative Milk Producers' Federation Limited, among others.