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Danone may kick off nutrition research
The French dairy major has already started giving thought to kicking off nutrition and diet-related research in India through its Danone Institute of Nutrition.
Updated : Sep 15, 2017, 01:04 AM IST
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BANGALORE: Groupe Danone may still have issues to be resolved with Wadia group before it can enter into the Indian market on it own but that has not stopped it from drawing up plans linked to its India foray.
The French dairy major has already started giving thought to kicking off nutrition and diet-related research in India through its non-profit organisation Danone Institute of Nutrition.
This indicates the seriousness of the company’s interest in India as the institute is usually a follow-up of its launch in any country and is supported from resources from the company’s business there.
Talking to DNA Money from Paris, Danone Institute of Nutrition director Dr Agnes Martin said: “India is very much on our radar.
We will come there once we have sufficient financial and human resource support. Danone is keen on tapping India’s dairy market and we will follow.”
Martin said in India, the institute would carry out studies on malnutrition among children, obesity and other diet-related issues and like China would enter into partnership with a local health organisation for the venture.
She, however, did not specify the timeframe of its entry into India. “I cannot say when it will happen.
Our institutes in all the 17 countries that we operate are run from part of earnings that Danone earns there. So, we would be there whenever Danone’s India business is ready to support us,” said Martin.
And it doesn’t seem that Danone would be able to start off its research projects in India soon. Danone, which has entered into India through two partnerships with the Wadia group, is embroiled in a legal battle with the later.
It is keen on started business in India on its own. However, the MNC cannot initiate any business without breaking away from Wadia due to a non-compete clause.
Danone has two joint ventures in India - Wadia BSN and Associated Biscuits International Holdings (ABIH), which holds 51% stake in Britannia Industries Ltd (BIL).
It is looking at selling its 25.5% stake in BIL but with the right of first refusal with the Wadias, the French company will have to pass its stake sale through the later.
And it will take some time for the Danone to settle these issues.
