May look at local manufacturing
The Indian value-added dairy market is in for a stir. Even as Amul, Glaxo SmithKline Consumer and Britannia are bringing in various value additions into the milk segment, Danone, the $18 billion France-based multinational is set to launch its range of dairy products in India by next month.
These moves are part of Danone’s overall strategy to increase focus on emerging markets from which it derives a third of its sales. The company is adopting the ‘Bottom of the Pyramid’ initiative for entry into India.
A decade ago, Danone realised 90 per cent of its sales in developed countries. Danone is present in four businesses — fresh dairy products, packaged water market, baby nutrition and medical nutrition.
Danone to start with will be sourcing from Indian suppliers and over the next year may look to set up its direct processing units.
Danone already has an equal joint venture with Yakult Honsha to develop the Indian market for probiotics. This joint venture has invested close to Rs 150 crore for a manufacturing unit and has been increasing its presence in India in the recent past.
Danone is taking these businesses actively after it recently exited a joint venture which held around 51 per cent in Indian biscuits major Britannia Industries. Danone by exiting the joint venture netted a capital gain of Rs 380 crore (Euro 56 million) when it divested its indirect 25.5 per cent holding in Britannia.
Britannia Industries recently launched Actimind, a milk based health drink for children. The company is positioning this as a functional drink with seven active brain nutrients that claims to help improve mental sharpness.
This launch comes a few months after Britannia launched UHT Milk with no fat and cholesterol in tetra packs.
Actimind is being launched initially in Tamil Nadu and will be available in select cities of Chennai, Coimbatore, Madurai, Trichy & Vellore. Priced at Rs. 15ô- per 150 ml per bottle, Actimind is available in Mango and Stawberry flavors with a shelf life of 6 months.
