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January 12, 2018

Danone pulls out of dairy in India

France's Danone will no longer sell dairy products in India, instead focusing on nutrition products, including brands such as Protinex and Aptamil, in the market.

By Leonie Barrie

France’s Danone will no longer sell dairy products in India, instead focusing on nutrition products, including brands such as Protinex and Aptamil, in the market.

The dairy giant said it had decided to “rationalise its product portfolio” in India, a move it said would “allow for accelerated investments and a sharper focus on growing its nutrition portfolio”.

Danone said its remaining business in India accounted for “more than 90%” of its sales there and pointed out it “enjoys a leadership position”. 

The change in focus will result in the closure of a Danone facility near Delhi. 

Danone wants to double the size of its nutrition business in India. “We have great ambitions for our business in India and remain committed to invest and grow in India through well-established brands such as Protinex, Aptamil, Farex, Dexolac and Neocate,” a spokesperson said.

“In order to maximise growth opportunities, we are continuously analysing our portfolio and sharpening our focus to accelerate investments on the best performing categories and products. For this reason, we will discontinue some of the SKUs sold in India.    “Our focus is to bring nutritionally superior and relevant products to India, and 2017 has been a testimony of that with ten new launches including some from our global portfolio.”       Aa factory at Rai near Delhi manufacturing discontinued products will stop production. It has not been disclosed if this will result in job losses.

Danone’s factory at Lalru, involved in manufacturing infant nutrition products, will continue to function as usual. 

In January last year, Danone launched the Aptamil infant formula product in India and in October it launched a line of protein-enriched snacks there, targeting the under-consumption of that nutrient by swathes of the local population.

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