Britannia On a Dairy Push Ahead of Danone's Entry

INDIA - Cookie major Britannia is focused on bolstering the dairy business at a time when its estranged co-investor Group Danone is readying independent India business plans in the same space. The Rs 2,200 crore company is digging into the large domestic dahi/yoghurt segment and seen stepping up interest in its dairy portfolio consisting of other milk derivatives.
calendar icon 28 November 2007
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Britannia is expanding the dahi/ yoghurt portfolio after hitting the market with a normal product. It has now added low fat variant and could be exploring flavored or probiotic products going forward. Dahi or yoghurt is core to Danone’s dairy business globally.

The French food giant, an investor in Britannia but in exit mode currently, is working on tapping India’s dairy market, which ranks amongst the world’s biggest in terms of percapita consumption.

Britannia, however, distances its ongoing focus on dairy segment from Danone’s proposed foray. “Our dairy business is growing at 18%, and could have grown faster but for limitations in sourcing milk. Further, we believe that dahi market, which is on a growth curve, is ripe for the brand play now,” Vinita Bali, MD of Britannia, told ET.

Britannia’s dairy business, in joint venture with New Zealand’s Fonterra, reported a turnover of Rs 130 crore last year. The company is joining rivals Nestle amnd Amul in pushing the brand action in the domestic dahi space, which is hugely dominated the traditional home-made consumption.

Source: The Times of India
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