Fonterra, the world's largest dairy exporter, is to quit its venture in India after deciding too much investment was needed behind the business.

The New Zealand-based firm said it would "pass its stake" to venture partner Britannia Ltd. Financial details were undisclosed.

Mark Wilson, Fonterra's managing directior in the Middle East, said: "We are casting a critical eye over our investments on an ongoing basis to ensure they reflect our key strategic priorities.

"While we are seeing a lot of growth in India, the local milk supply is fragmented and requires significant development and investment in order to deliver an efficient supply chain for high quality fresh milk. Investing in India's consumer dairy market is not a core priority for Fonterra at this time."