Big brands line up to buy local players in dairy despite steep valuations

Lactalis, Danone, Nestle, Britannia and ITC are getting aggressive

This week French major Lactalis made its third acquisition in India, snapping up the dairy business of Prabhat, in a  transaction that has caught the attention of all. At Rs 1,700 crore, this is clearly a big deal in dairy and signals the importance Lactalis is giving the Indian market.

However, it is not the only company that is active in the domestic dairy category. A year after exiting the space, rival Danone re-entered India last week with an investment in yoghurt maker Epigamia. It did not disclose the deal size, but said it was open to more investments in India.