Danone pulled out of India’s dairy market six years ago, preferring instead to focus on infant formula and protein powders.
French dairy major Danone has indicated it plans to return to selling dairy products in India.
Danone has announced investment plans for the market that include the launch of a three-year programme to work with farmers in Punjab.
The company said it wants to “equip more than 5,000 smallholder dairy farmers in Punjab with sustainable farming methods and knowledge of resilient farming models”.
Danone said the efforts would “help increase milk yields boost farmer incomes and improve cattle welfare”.
Actimel and Activia owner Danone announced in 2018 that it would no longer sell dairy products in India, instead focusing on nutrition products, including brands such as Protinex and Aptamil.
At the time, Danone said its remaining business in India accounted for “more than 90%” of its sales there and pointed out it “enjoys a leadership position” in those categories.
During a visit to the country on Friday (27 September), CEO Antoine de Saint-Affrique told Indian business news outlet Mint Indian consumers will soon see more of its products on shelves.
“Competitors in India are so strong that I’m not going to announce in advance what we are going to do,” de Saint-Affrique was reported as saying.
Asked by Mint about the potential opportunities Danone might have missed in India’s dairy market while competitors have benefited from a growing middle-class there, de Saint-Affrique said “the past is the past”.
He added: “What I’m interested in is the future. The growth is no way close to stopping in India. See the growth of the population, the growth of the middle-class, you see the relevance of our products in these markets.”
The dairy farmer programme will be delivered through a partnership with BAIF Development Research Foundation, an agriculture-focused non-government organisation.
In a statement, de Saint-Affrique said: “At Danone, we have always believed that we cannot succeed without our farmer partners and must work closely with them to create shared value. Danone is committed to build inclusive growth for all our farming partners and local manufacturing: Danone India is an important growth market for Danone and this partnership is a way to build this journey together.”
Danone, which launched its nutrition business in India in 2012 by acquiring the nutrition portfolio of Wockhardt group, has its country headquarters in Mumbai. It employs more than 1,000 people across India.
It has a specialist nutrition facility in Lalru, Punjab, which employs more than 300 people and its announcement included news of a €20m ($22.4m) investment in that facility.
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