In a statement on Thursday Fonterra’s chief operations officer Lukas Paravicini said that the joint partnership, known as Fonterra Future Dairy Partners, will enable Fonterra to establish a presence in India to meet the growing demand for high-quality dairy nutrition.
“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 dairy industry. Consumer demand for dairy in India over the next seven years is set to increase by 82 billion litres – seven times the forecasted growth for China,” he said.
Driving this growth is the country’s young population where 70 per cent of people are below 45 years old. They lead an active lifestyle, have more disposable income and want to consume higher quality and higher nutritional dairy products.
“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. The first consumer products will be launched by the middle of 2019, using both locally sourced milk and dairy products from New Zealand,” Paravicini added.
CEO of Future Group Kishore Biyani said that 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,” he said.
Future Consumer Ltd is part of the Future Group which is leading the way in India by developing a new retail experience for consumers with plans to launch 1,100 stores this year. The stores will feature a complete digital experience both in-store and through a virtual market place. Future Group is present in 26 of 31 Indian states with over 2,000 modern trade outlets and 5,000 public distribution outlets and a nationwide cold-chain and ambient distribution network.