INDIA BUSINESS WORLD - OCTOBER 2005
THE MONTH THAT WAS

DANONE, JAPAN CO SET UP JV FOR INDIA

French dairy giant Danone and Japanese nutraceutical major Yakult Honsha have inked a joint venture to target the Indian market. The 50:50 JV, Yakult Danone India (YDI), plans to roll out with the latter's probiotic milk products early next year.

Probiotic supplements contain useful bacteria that assist in balancing the levels of indigenous micro organisms in the human body. Yakult Danone India will initially market Yakult products, and the Danone probiotics range may be added later, sources said. The duo sees a great potential in the country with its huge population and a long tradition in dairy products.

An e-mail to Yakult Europe's spokesperson, Ingrid Houtkooper, was forwarded to the Japanese headquarters, but failed to elicit a response till the time of going to press. However, the spokesperson did not deny the development.

The move is part of the agreement announced in March 2004 for co-operation between Danone and Yakult Honsha. Early this year, Yakult had signaled a keen interest in expanding its opportunities outside its home market, Japan, and had opened its first research centre in Belgium. Danone, which already holds 22% equity in Britannia Industries, has been independently scouting for opportunities in India for over a year now.