Fonterra Now On The Ground In India
Fonterra is now formally "on the ground" in India's NZ$50 billion dairy market.
A joint venture between Fonterra's consumer products division NEW ZEALAND MILK and Britannia Industries Ltd - Britannia New Zealand Foods Ltd - has received the necessary regulatory approval and commenced operations today.
The new company will be based in Bangalore and will market a wide range of dairy products, including, butter, cheese, dairy whiteners, ghee and liquid milks.
The Britannia brand is well known in India. Britannia's major business is in bakery. The company has a strong national distribution network and has in recent years moved into the dairy sector.
NEW ZEALAND MILK managing director David Pilkington said today while domestic operators supplied the bulk of India's huge NZ$50 billion milk market through an informal market, there was a NZ$5.8 billion 'formal" market which the new company would target.
He said that sector of the market was growing at around nine percent annually and NEW ZEALAND MILK saw exciting possibilities for sales growth. Britannia Industries Ltd Chairman Nusli Wadia said: "This new company will have full access to Fonterra's considerable R&D strengths, which will help in further upgrading product quality and reducing product costs. A number of new product innovations are also planned. The combined strengths of Britannia and Fonterra will constitute a formidable force in meeting consumer needs and developing our presence in the dairy segment."