survival of the fittest

Yoghurt is not dahi, said Parag to Danone

Parag’s acquisition of Danone’s facility is a watershed moment in the evolution of India’s nascent yoghurt market

Ruhi Kandhari, 17 May 2018

Danone exited the Indian dairy sector, auctioning off its yoghurt facility despite yoghurt being the fastest growing dairy product

The French dairy major failed due to both poor strategy and the drawbacks that come with being a foreign player

Parag Milk Foods has bought Danone’s yoghurt facility and believes it has what it takes to succeed where Danone failed

But there's a lot of competition. Private dairies and startups alike are all set to give Parag a run for its money

When the seven bidders surveyed Danone’s only dairy facility in India, roughly the size of a football field, they thought it was tiny. But they were there for what it could produce—15 tonnes of thick, stirred, fruit-flavoured yoghurt every day. What’s more, its location on the outskirts of Delhi made it an ideal choice for distribution in north India. Crucially, acquiring the plant would give the new owners the advantage of entering the market before their competitors; a similar facility to Danone’s would take about a year to set up.

AUTHOR

Ruhi Kandhari

Ruhi writes on the impact of healthcare policies, trends in the healthcare sector and developments on the implementation of Electronic Health Records in India. She has an M. Sc. in Development Studies from the London School of Economics.

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Yoghurt is not dahi, said Parag to Danone