Mumbai: Future Group has entered into an equal joint venture with the world’s largest dairy exporter, Fonterra to launch dairy products in India. The revenues of Fonterra exceed $14 billion and it is twice the size of Amul.
The first product of the JV – Fonterra Future – will be launched by mid of the year on the retail shelf and it will also be available in direct to home subscription model.
Commenting on the JV, Kishore Biyani, CEO, Future Group said, “New categories and innovative products will be launched for India’s new age customers within the dairy space. In this segment, the customers indulge over 3-4 times a day. Existing Nilgiris dairy business will be merged with this new firm.”
Kiwi Co-operative Dairies and New Zealand Dairy Group merger with the New Zealand Dairy Board in 2001 gave birth to Fonterra Co-Op. The largest dairy formed a joint venture with Britannia and entered India in 2007.
The statement released by the Fonterra Co-Op, said, “It will allow us to prepare the groundwork and make the most of our expertise as we enter the world’s largest and fastest growing market. Consumer demand for dairy in India over the next seven years is set to increase to 82 billion litres – seven times the forecasted growth for China.”
FCL, which counts Arisaig Partners and Verlinvest as its investors, has been building distribution network beyond its own stores – it partnered Indo-Nissin to sell products at kirana stores and also has partners such as Tata StarBazaar, Metro and Spar, besides 5,000 Rajasthan fair price shops. In addition, the Company has also built a rural wholesale club model through Aadhaar in other states in Western India.
Last fiscal, FCL launched more than 400 new products and stock keeping units (SKU) and posted 42 per cent rise in revenues to Rs3,005 crore. The company also has a host of other global tie-ups including Hain Celestial to manufacture and sell food products in the health and wellness space and Mibelle AG, a division of Migros Group, Switzerland, to make a range of personal-care products under the brand Swiss Tempelle.