Danone's loss is Parag's gain: Are dairy MNCs facing challenges in India?

Last week, French food-products major Danone put its India dairy chapter to rest with the sale of its Haryana unit to local player Parag Milk Foods. 

Danone's exit, the second after New Zealand-based Fonterra Dairy in 2009, points to the challenges that global firms face in the world's largest milk-producing nation. 

Danone's arch-rivals Nestle and Lactalis, too, face difficulties in the Indian market, said experts. 

Nestle, the world's largest food company, has a presence largely in the value-added dairy space, pushing products such as greek yoghurts, dairy whiteners, probiotic dahi, and tetra pak milk that have an urban skew, added experts.