Fonterra has entered the Indian dairy market by partnering with Indian consumer goods company Future Consumer Ltd to create a new joint venture company in the country.
Called Fonterra Future Dairy Partners, the joint venture will produce a range of dairy products for both the consumer and foodservice sectors, which will meet the growing demand for dairy products from Indian consumers.
According to a statement released by Fonterra, the partnership was established to meet the needs of young Indian consumers, who desire high quality and nutritious dairy products.
Future Consumers is part of the Future Group, which operates over 2,000 modern trade outlets and 5,000 public distribution outlets throughout India, and Future Consumer aims to launch 1,100 retail stores this year.
Lukas Paravicini, Fonterra’s chief operating officer, global consumer and foodservice said: “(The partnership) will allow us to prepare the groundwork and make the most of our expertise as we enter the world’s largest and fastest growing dairy industry.
“Consumer demand for dairy in India over the next seven years is set to increase by 82 billion litres – seven times the forecasted growth for China.
“The partnership will be driven by growth through profitability. The initial stages of the partnership will focus on product development, and marketing with the right capital investment made during this period. The first consumer products will be launched by the middle of 2019, using both locally sourced milk and dairy products from New Zealand.
“We will also use this time to settle in the partnership infrastructure, learn the market and prioritise geographies.”
Kishore Biyani, group chief executive officer of Future Group added: “Consumption of milk and other dairy products in India are increasing and will continue to receive strong demand.
“With Fonterra, Future Consumer will enhance its food and FMCG portfolio and will offer a variety of dairy products which are high in demand and consumed daily.”
Ashni Biyani, managing director of Future Consumer said: “As a company that stands for FMCG 2.0, Future Consumer is committed to provide not only the best, but the latest in food and other daily consumed products.
“We are delighted to partner with Fonterra, who globally leads the dairy industry in quality and innovation.
“Through this partnership, we will be able to reach our customers daily with quality dairy products.”
© FoodBev Media Ltd 2019