French foods maker Danone is exiting its dairy portfolio in India, seven years after it entered the category dominated by Gujarat Cooperative Milk Marketing Federation (GCMMF)-owned Amul and Mother Dairy, besides Nestle and Britannia. While India is the world’s largest producer and consumer of dairy, Danone’s dairy business could not compete with bigger players and has remained a non-starter.
Danone’s fresh dairy portfolio in India included dahi, mishti dahi and flavoured yoghurts, and the UHT portfolio comprised of UHT Milk, buttermilk, lassi, cold coffee and smoothies. A company spokesperson confirmed the development. “Danone 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% of the business, and where the company already enjoys leadership position,” the spokesperson said.
Danone had entered the dairy business after breaking up its troubled joint venture with Britannia in 2010. Its factory at Rai near Delhi manufacturing discontinued products will stop production. Danone’s other factory in Punjab, manufacturing infant nutrition products will continue to function, the company said.
Danone will exit products which have been making a minority contribution to its overall business in India which include the UHT and fresh dairy products. “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.”
Source: Economic Times