Danone India’s investment plans indicate a return to dairy products

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French dairy giant Danone has indicated that it plans to sell dairy products in India again.

Danone has announced investment plans for the market, including the launch of a three-year program to work with farmers in Punjab.

The company said it aims to “equip more than 5,000 smallholder dairy farmers in Punjab with sustainable farming practices and knowledge of resilient farming models”.

Danone said the efforts would “help increase milk yields, increase farmers’ incomes and improve livestock welfare.”

Actimel and Activia owner Danone announced in 2018 that it would no longer sell dairy products in Indiainstead focused on nutritional products, including brands like Protinex and Aptamil.

At the time, Danone said its remaining operations in India accounted for “more than 90%” of sales there and pointed out that it “occupies a leading position” in those categories.

During a visit to the country on Friday (September 27), CEO Antoine de Saint-Affrique told Indian Business News Mint Indian consumers will soon see more of its products on the shelves.

“The competitors in India are so strong that I am not going to announce in advance what we are going to do,” De Saint-Affrique said.

Requested by Mint on the potential opportunities Danone may have missed in the Indian dairy market as competitors there have benefited from a growing middle class, De Saint-Affrique said: “The past is the past.”

He added: “What I’m interested in is the future. In India, growth has far from stopped. When you see the growth of the population, the growth of the middle class, you see the relevance of our products in these markets.”

The dairy farmers program will be implemented through a partnership with BAIF Development Research Foundation, an agriculture-focused non-governmental organization.

In a statement, de Saint-Affrique said: “At Danone we have always believed that we cannot succeed without our farmer partners and that we must work closely with them to create shared value. Danone is committed to building inclusive growth for all our agricultural partners and local production: Danone India is a key growth market for Danone and this partnership is a way to build this journey together.”

Danone, which launched its food business in India in 2012 acquisition of the Wockhardt group’s food portfoliohas its country headquarters in Mumbai. It employs more than 1,000 people across India.

It has a specialized nutrition facility in Lalru, Punjab, which employs more than 300 people. The announcement included news of a €20 million ($22.4 million) investment in that facility.

“Danone India investment plans signal return to dairy products” was originally created and published by Just eata brand owned by GlobalData.


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