INDIA – French dairy giant Danone has announced its intention to re-enter India’s dairy market following its 2018 exit from the sector.
The company had shifted its focus to nutrition products, such as Protinex and Aptamil, which accounted for more than 90% of its sales in India then.
Danone plans to revive its dairy business in the country with new investments and initiatives, marking a strategic shift.
The company has outlined a three-year program to support smallholder dairy farmers in Punjab. Through a partnership with BAIF Development Research Foundation, an agricultural non-governmental organization, the company intends to assist more than 5,000 dairy farmers.
The initiative focuses on equipping these farmers with sustainable and resilient farming practices, which will help increase milk yields, boost farmer incomes, and improve cattle welfare.
During a recent visit to India, Danone’s CEO, Antoine de Saint-Affrique, hinted at the company’s broader ambitions in the country, though he refrained from sharing specific details.
In a statement, he emphasized the importance of collaboration with local farmers, saying, “Danone is committed to building inclusive growth for all our farming partners and local manufacturing. India is a critical growth market for us, and this partnership reflects our shared vision for sustainable progress.”
The decision to re-enter the dairy sector in India comes as the country’s middle class is expanding, creating more demand for quality dairy products.
Although competitors have capitalized on this growing market in recent years, Danone sees the future as an opportunity to strengthen its presence.
Danone’s investments include a €20 million (US$22.4 million) upgrade to its nutrition facility in Lalru, Punjab, which employs over 300 people.
This facility plays a key role in the company’s operations in India, where it employs more than 1,000 people overall.
With this new dairy program and strategic investments, Danone is positioning itself for long-term growth in India’s burgeoning dairy market while contributing to its agricultural development and sustainability efforts.
In March, Danone India introduced a digital campaign to promote AptaGrow, which is designed to address the nutritional needs of children aged 3-6.
The digital campaign focuses on the importance of nutrient absorption, especially for holistic child development.
According to the company, AptaGrow, formulated with prebiotics and 37 essential nutrients, is crucial in enhancing nutrient absorption in children.
Research done by health associations revealed that approximately 40% of children under 5 in India fail to reach their full growth potential, necessitating a solution like AptaGrow.
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