Danone India eyes over Rs 250 cr from family health drinks

It is hoping to capture 5-10% of the Rs 4,000-cr market

France-based global food company Danone SA is eyeing over Rs 250 crore revenue from its family health drinks business in the coming three years as it is preparing a slew of product launches in the country.

While the company's Indian division is aiming to double its consolidated topline in nutrition portfolio by 2020 by introducing new products and opt for cost control which will better its margins, Danone India is hoping to capture 5-10 per cent of the Rs 4,000 crore strong family health drinks market in India, which is currently growing by eight per cent.

It has recently launched the Protinex range of health drinks, specially formulated for adolescents and will shortly be introducing two more products in India specialised for certain heath conditions.

The company, which focuses on niche consumer segments, will continue with its focus on specialised nutrition and supplements in the country instead of opting for a mass product which can be consumed irrespective of age or gender.

Besides, it is also considering reducing prices of its product portfolio which usually falls under the premium segment.

"As we expand our sales volume, we will cut down prices of our products to make them more affordable", Rodrigo Lima, managing director of Danone India said.

In its pursuit of increasing sales volume, the company is also counting on online sales which is expected to contribute 20 per cent of its consolidated sales by 2020.

Although Danone India has won plants in the country which manufactures yoghurt and infant food, it continues to rely on outsourced manufacturing for other food categories.

However, the company is ensuring that it doesn't suffer a similar fate like the popular instant noodles, Maggi, which went off shelves on controversy over quality issues.

For each batch of products, the company ships samples to its laboratories in Europe and elsewhere which checks the product quality before it can be introduced in the market.

Lima said the Indian division of Danone SA also supplies the necessary equipment and manpower at outsourced manufacturing locations to ensure product safety.

However, while it has been manufacturing its entire Indian portfolio inside the territorial borders of the country, the two new products which well be introduced will be imported.

"However, we are working on a strap plan on own manufacturing", Lima said.