Danone exits dairy business in India

Danone entered India in 2010 with several nutrition and dairy products on offer for the consumers. After 8 years, Danone has decided to exit the dairy business in India with production being stopped at Rai, Delhi. It is rationalising their product portfolio and discontinued stock keeping units (SKUs), which has been making a minority contribution to its overall business in India that include the UHT (ultra high treatment) and fresh dairy products.

 

In a statement, Danone said it has decided to rationalise its product portfolio in India to allow for accelerated investments and a sharper focus on growing its nutrition portfolio which is more than 90 per cent of the business. Danone intends to double its nutrition business in India by 2020 in line with its global mission to ‘bring health through food to as many people as possible’ and this renewed focus is key to achieving this goal.

 

Danone India spokesperson said, “We have great ambitions for our business in India and remain committed to invest and grow in India through well-established brands such as Protinex, Aptamil, Farex, Dexolac and Neocate. To enhance growth opportunities, we are continuously analyse our portfolio and sharpen the focus to accelerate investments on the best performing categories and products. For this reason, we will discontinue some of the SKU’s sold in India. Our focus is to bring nutritionally superior and relevant products to India, and 2017 has been a testimony of that with 10 new launches including some from our global portfolio.”

 

Danone India MD, Rodrigo Lima plans to focus on its nutrition business that it had acquired from Wockhardt in 2012, for about Rs 1,500 crore. In 2015, the company consolidated its India business by merging the two portfolios (dairy and nutrition). The company had incurred losses on its dairy business like milk, flavoured yogurt, buttermilk, cold coffee, curd and smoothies. They were unable to compete with national giants like Amul, Mother Dairy and other regional brands. However, Danone is committed to invest and grow in India through brands such as Protinex, Aptamil, Farex, Dexolac and Neocate.

 

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