Danone to rationalise India portfolio to allow for growing investments

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Danone has decided to rationalise its product portfolio in India to allow for accelerated investments and a sharper focus on growing its nutrition portfolio, which accounts for over 90 per cent of the business. The company already enjoys a leadership position in the country. In line with this, Danone with discontinue stock-keeping units (SKUs) which have been making a minority contribution to its overall business in India, which include the ultra-high temperature (UHT) and fresh dairy products. 

Danone has a stated goal to double its nutrition business in India by 2020 in line with its global mission to bring health through food to as many people as possible, and this renewed focus is the key to achieving this goal. A Danone India spokesperson, said, “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.”

“In order to maximise the 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 are discontinuing some of the SKUs sold in India,” he added. “Our focus is to bring nutritionally-superior and relevant products to India, and 2017 has been a testimony to that, with 10 new launches, including some from our global portfolio,” the spokesperson stated.

In line with this, a small factory at Rai near Delhi manufacturing the discontinued products will stop production. Danone’s state-of-the art factory in Lalru, which is involved in manufacturing infant nutrition products, will continue to function as usual.

Source: FnB News.

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