Parag Milk Foods, a dairy firm based in Maharashtra, India, is to acquire a manufacturing plant formerly owned by French dairy giant Danone with an investment of 30 crore INR ($4.5 million).
The plant, located in Rai near Delhi, became available following Danone’s decision to exit the dairy sector in India and refocus its business in the country on infant nutrition, a move announced at the start of the year.
“In order to maximise growth opportunities, we are continuously analysing our portfolio and sharpening our focus to accelerate investments on the best performing categories and products”, the company said at the time.
In a stock exchange filing, Parag Milk Foods said the acquisition would bolster its footprint in northern India, as well as making it “the largest player in private dairy sector in India involved in the manufacturing, marketing and distribution of dairy products produced exclusively from pure and fresh cow’s milk”.
Commenting on the acquisition, Parag Milk Foods chairman Devendra Shah said,:“North India is one of the key markets for Parag Milk Foods. Given that dairy products hold a large space in many households here, consumption of milk and milk products is the highest in this region. The acquisition of the manufacturing facility of Danone will strengthen our product offerings and leverage our strength in distribution of various products”.
Source: Parag Milk Foods
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