Fonterra plans to foray into Indian market for third time

New Zealand-based multinational dairy co-operative Fonterra is planning to move into the Indian market for the third time, by setting up a local office in Delhi in 2013.

The office, which will aim to take advantage of the fast-growing dairy industry, will be headed by Hamish Gowans, who will be appointed as the general manager.

In 2009, Fonterra ended a seven-year-old joint venture with Indian food company Britannia and, in 2010, it entered into an agreement with the Indian Farmers Fertiliser Cooperative (Iffco) to set up a large dairy farm housing 40,000 cows in Nellore, Andhra Pradesh.

This project, however, was terminated after the proposal was turned down by the government’s SEZ board.Fonterra is planning to go solo in India the third time and seeks to gain a better understanding of the local dairy market.

Fonterra Greater China and India president Kelvin Wickham was quoted by the Business Standard as saying that India produces a sixth of the total milk production in the world, but most of the production is consumed locally.

While Fonterra has gained a solid knowledge of the dairy environment in the country, dedicated leadership is required to further build up relationships and develop opportunities, Wickham added.

Gowans, who previously headed the Fonterra’s ingredient business throughout Asia, will be responsible for accelerating the growth of the co-operative’s operations in India as it seeks to establish itself.

In India, Fonterra will be competing with dairy cooperatives, such as Amul and Mother Dairy, and private companies, such as Britannia, Nestle and Danone; and regional brands.

Fonterra, based in Auckland, is involved in the production of milk and milk-derived products under brands such as Anchor, Anlene and Anmum, and it exports the products to markets in the Middle East, Australia, Africa and Asia.

---

Image: Fonterra, which is set to establish its presence with the local office, plans to gain a better understanding of the local dairy market. Photo: courtesy of Fonterra.