New Delhi, August 10, 2018: Fonterra, a leading global dairy exporter based in New Zealand, has partnered with Kishore Biyani-promoted Future Group to unveil a range of consumer and food service dairy products to help meet the growing demand for high-quality dairy nutrition in India.
Fonterra’s joint venture (JV) with Future Consumer Ltd., which will be known as Fonterra Future Dairy Partners, will enable Fonterra to establish a presence in India.
Lukas Paravicini, Fonterra’s Chief Operating Officer, Global Consumer and Food Service, said, “It [JV] will allow us to prepare the groundwork and make the most of our expertise as we enter the world’s largest and fastest growing dairy industry. Consumer demand for dairy in India over the next seven years is set to increase by 82 billion litres — seven times the growth forecast for China.”
The JV plans to unveil the first range of consumer products by mid-2019, using both locally sourced milk and dairy products from New Zealand according to thehindu.com.
Growth via profitability
“The partnership will be driven by growth through profitability. The initial stages of the partnership will focus on product development and marketing with the right capital investment made during this period. We will also use this time to settle in the partnership infrastructure, learn the market and prioritise geographies,” Mr. Paravicini said.
Kishore Biyani, Group Chief Executive Officer, Future Group, said the association with Fonterra comes at a time when the dairy industry in India is flourishing.
“Consumption of milk and other dairy products in India are increasing and will continue to receive strong demand. With Fonterra, Future Consumer will enhance its food and FMCG portfolio and will offer a variety of dairy products which are high in demand and consumed daily,” Mr. Biyani said.
Future Consumer is part of the Future Group which plans to unveil 1,100 stores this year. The stores will be within close proximity of target consumers, and feature a complete digital experience, the company said in a statement. Ashni Biyani, MD, Future Consumer Ltd., said, “Future Consumer is committed to provide not only the best, but the latest in food and other daily consumed products. We are delighted to partner with Fonterra, who globally leads the dairy industry in quality and innovation. Through this partnership, we will be able to reach our customers daily with quality dairy products.”
Future Group has presence in 26 Indian states and has a nationwide cold-chain and ambient distribution network, the company said.