Danone is reportedly considering acquiring Indian baby food manufacturer Dumex India.
Les Echoes reported today (24 January) that the company would be a “natural target” for Danone, which already owns most Dumex operations in Asia as part of its acquisition of Dutch baby group Numico in 2007.
CM-CIC Securities analyst Francis Pretre said that a move back into the Indian infant nutrition market, which is a “high growth market” and “largely dominated by Nestle” would hold appeal.
“Dumex India is for sale, and it is natural that Danone would be interested,” he said.
He added that even if the company does not manage to acquire Dumex India, “there are other targets that it is interested in”, including Asia and South America.
While Pretre is confident that Danone will continue to expand among the BRIC nations, he added that “uncertainty remains” around the margins that Danone could generate in these regions.
Danone did not respond to requests for comment as this article went to press.