Danone's dairy tales: Is Rs 900 bn Indian market not meant for foreign cos?

Why did the French major give up on the world's largest dairy market and; what does that mean for other dairy brands in the fray?

A month ago, the world's second-largest dairy player Danone, shuttered down its dairy business in India, the world's largest dairy market. Seven years after it entered the country, the French major said it was cutting its losses in a market that is dominated by cooperative dairy players, Britannia and Nestle. Where did it go wrong?

A combination of factors, say experts: India is the world's largest producer and consumer of dairy but Danone's dairy business here could not cross 10 per cent of its India turnover. The company's strategy for the Indian market (marketing & distribution, the premium pricing) was