Indian dairy sector becoming cynosure of global players: Adrie
MENOSH JEREMIAH
TIMES NEWS NETWORK[ THURSDAY, FEBRUARY 19, 2004 02:58:24 AM ]

HYDERABAD: Many global dairy companies are keen to enter the Indian dairy markets in the near future, thanks to dramatic change in their perception of Indian dairy industry and the enormous growth potential it has, according to Adrie Zwanenberg, global head, food and agribusiness, Rabo Advisory and Research, Holland.

While companies like Nestle (Swiss), Sodiaal (France), Schreiber (USA), Bongrain (France), Lactalis (France) and Fonterra (New Zealand) are already here, we expect some more leading companies enter the Indian dairy market in the near future, he told ET.

Among the foreign companies already present in the Indian markets, Sodiaal has tied up with Jaipuria Group, Lactalis has collaborations with two Indian companies: Karamels and L-Comps & Impex (P) Limited, and Fonterra is having ties with Britannia. Lactalis of France is also seriously looking at appointed its third distributor for south India.

These companies have entered India with their value-added milk products such as cheese, icecreams, and yogurts. With changing life styles and increasing income levels, there is a growing demand for value-added dairy products. Hence, we expect more foreign companies enter our markets to cash in on the demand for such products, said Ms Sonal Shah, head, food and agribusiness, Rabo India Finance.

Elaborating on the reasons for the foreign dairy companies changing their perception of the Indian dairy sector, Mr Adrie felt that it’s because of the steps being taken within the country for improving milk quality and the growing investments being made for improving infrastructure to handle, process and transport milk in the most hygienic way.