Danone has decided to rationalize its product portfolio in India to allow for accelerated investments and a sharper focus on growing its nutrition portfolio which is more than 90% of the business, and where the company already enjoys leadership position.
In line with this, Danone with discontinue SKU’s which have been making a minority contribution to its overall business in India which include the 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 key to achieving this goal.
According to Danone India Spokesperson:
“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 maximize growth opportunities, we are continuously analyzing our portfolio and sharpening our focus to accelerate investments on the best performing categories and products. For this reason, we will discontinue some of the SKU’s sold in India”
“Our focus is to bring nutritionally superior and relevant products to India, and 2017 has been a testimony of that with 10 new launches including some from our global portfolio.”
In line with this, a small factory at Rai near Delhi manufacturing discontinued products will stop production. Danone’s state-of-the art factory at Lalru involved in manufacturing the infant nutrition products will continue to function as usual.