Danone has decided to merge its Indian dairy business with its more profitable baby and medical nutrition units In order to boost distribution and improve profitability.
The company said the move will improve distribution and will boost profit, as it plans to move the office from Delhi to its country headquarters in Mumbai.
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Laurent Marcel, the head of Danone's operations in India, said merging the units will accelerate growth and simply structure. "We have decided to merge the units, as this help the company with enhanced synergies including distribution, operations, and head office synergies," he told just-food. .
The French company will not cut any jobs in this process but will hire more talent, Marcel added.
Danone has been working on this plan to make its mark in the US$11.5bn Indian dairy market, which has been ruled by local co-operatives such as Amul and Mother Dairy.
Marcel, who was formerly the general manager of Danone’s nutrition business in India added the new entity will be known as Danone India Pvt Ltd.
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By GlobalDataRodrigo Lima, the former head of the medical nutrition business, will now be in charge of baby nutrition as well, while Jochen Ebert will remain general manager for dairy, reporting to Marcel.
