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. Parag Milk Foods, whose Rs 30 crore ($4.4 million) bid was successful, seems to have understood the need to act fast if it is to succeed in the yoghurt sector.
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
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