Oct 3, 2020
Danone which has always had an up and down relationship with India is anticipating to grow its business in India in 2020. Despite disruptions and loss of sales due to the pandemic and the lockdown, the French food giant expects to post better growth than last year.
Danone that manufactures Protinex and Dexolac has already managed to bring its business back to the growth path. In September, for e.g, the company registered higher growth (year-on-year) than it did last year, Since its exit from the dairy space in 2018, the firm’s adult nutrition portfolio, led by Protinex, has been the largest contributor to its top line. While its infant nutrition business contributes a little less than 50 per cent, it is the adult nutrition business that is growing faster — “at a healthy double-digit rate”.
According to said Himanshu Bakshi, managing director, Danone India exited the Indian diary market to renew its nutrition portfolio. The firm is now exporting Protinex to Thailand. “Protinex is our first Indian brand to be launched overseas,” he said.The French food giant now plans to launch a few major brands from its global portfolio. Like in India, globally Danone competes directly with food and nutrition major Nestlé with some of its flagship brands like Actimel, Alpro, and Nutricia.
The recent disruptions, however, have altered the dynamics of the market. While e-commerce and general trade (local kiranas) have emerged as key distribution channels, one of the fastest growing retail channels in the past two years — the modern trade — has faltered. According to Bakshi, its field personnel have managed to streamline distribution but recovery in modern trade is some time away.