Arla sees growth continuing in Bangladesh

Arla sees growth continuing in Bangladesh

Dairy giant Arla Foods has merged its Bangladesh interests with local distributor Mutual Foods.

The companies have formed a joint venture to accelerate already strong sales growth of powdered milk in a national liquid and powdered milk market estimated at US$700m.

"We will plough US$40m into the joint venture over the next three years with an ambition to become the leader in this market," Sanayet Kabir Khan, CFO of newly-formed Arla Foods Bangladesh, told just-food.

He estimated the venture will see its market share rise from 20% to 30% in the next three years.

Mutual, which is also a manufacturer, has packaged and distributed Arla's Dano milk powder, a household brand in Bangladesh since the early 1960s. It commissioned a new packaging plant last December after sales of Dano quadrupled in four years.

Established in 1962, Mutual Foods, a wing of parent Mutual Group, also established global brand Horlicks in Bangladesh.

The joint venture, 51% majority owned by Arla, this week launched Dano Daily, low-priced milk powder sachets fortified with vitamins and minerals to supplement Bangaldeshi diets.