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BT Buzz: Global dairy companies carve their India strategy

BT Buzz: Global dairy companies carve their India strategy

These global dairy companies have struggled to get their recipe right in India. But the 1.3 billion strong consumption story never really allowed them to give up on India.

twitter-logo Ajita Shashidhar   New Delhi     Last Updated: June 19, 2019  | 09:52 IST
 
 
BT Buzz: Global dairy companies carve their India strategy
The Rs 100,000 crore organised Indian dairy industry is something that global dairy giants are finding impossible to ignore.
The Rs 100,000 crore organised Indian dairy industry is something that global dairy giants such as Fonterra or Danone are finding impossible to ignore. The irony, however, is that these dairy companies have struggled to get their recipe right in India. Danone (dairy arm) burnt its fingers and exited the Indian market in early 2018, while Fonterra, which had partnered with Britannia exited the country in 2007.
 
But the 1.3 billion strong consumption story never really allowed them to give up on India. Within a year of its exit, Danone's investment arm, Danone Manifesto Ventures, pumped in Rs 182 crore into gourmet yoghurt brand, Epigamia, while New Zealand's Fonterra Dairy, after a 12-year hiatus is back in India through a 50:50 joint venture with Future Consumer Products.
 
 
"Earlier, when we got into the country, the focus was on fresh liquid milk. There were challenges in procuring the right quantity of milk as well as the right quality of milk. The second part was the cold chain, which was fairly traditional and not developed to handle the cold chain requirements across the country. We faced issues and realised that we needed to exit. Those challenges which were there at that time have gone away to a very large extent," points out Sunil Sethi, Chairman, Fonterra-Future Dairy and MD, Sri Lanka & India Subcontinent, Fonterra. The JV's target is to build a Rs 6,000 crore business in the next 5-6 years.
 

 

Posted Date : 01/07/2019 Posted By : Admin