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Danone to Exit Loss-making Dairy Segment in India

12 January 2018

INDIA - French FMCG firm Danone is shutting down its loss-making dairy segment in India, meaning all the dairy products - from their yogurts to their smoothies - will be taken off the shelves, the company said in a statement.

Along with this, the ultra heat treatment procedure - the famously known 'TetraPak" packaging method will also be discontinued. The firm has also announced shutting down their manufacturing unit manufacturing these discontinued products at Rai near Delhi, reports.

In March last year, the firm was determined to make a significant mark in the dairy market by launching its greek yogurt product and expanding its dairy business extensively by 2020.

However, now, the firm seems to be the victim of tough competition from existing dairy market leaders such as Amul, Nestle India, Britannia and it will concentrate on their profit-making brands such as Protinex.

The firm will concentrate on - Protinex, Aptamil, Farex, Dexolac and Neocate products - which they claim make 90 percent of their business. The brand, Protinex is for adults and the other mentioned brands are the nutrition supplements for babies and infants.

The statement, quoting a Danone India spokesperson said, "In order to maximize growth opportunities, we are continuously analyzing our portfolio and sharpening our focus to accelerate investments on the best performing categories and products."

TheCattleSite News Desk

Top image via Shutterstock


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