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New Delhi, July 23 Amidst reports of Nestle India exiting its dairy business in the country, the company is, on the contrary, upbeat on the segment and has tied up with several regional dairies to extend its national footprint.

For instance, the FMCG giant has tied up with Andhra Pradesh-based Heritage Foods India Ltd in the South, Bengal Nester in the East and Dynamix Dairy Industries Ltd in the West not only for sourcing milk but also processing, packaging and supplying in the areas concerned. It has already built Moga in Punjab into a procurement haven, from where the company sources the bulk of its milk requirement, about ten lakh litres per day.

“At Nestle India we clearly recognise the need to step up the gas on our dairy business, considering the current consumer inclination towards health and wellness,” said Mr Mayank Trivedi, General Manager, Dairy Division, Nestle India.” In fact, several changes have been brought about in the dairy division since 2006 in terms of both packaging and product variations. We are experiencing an over 20 per cent growth in the division and hope to do even better in the future,” he added.

Mr Trivedi said that dairy products such as ice-cream and cheese were not being considered by the company due to ‘not so healthy’ reputation, despite contributing a fair share of revenues to the dairy business worldwide. “The focus will be on healthy products such as liquid milk and its variants as well as yoghurt. We think that both these categories hold immense opportunities that are still untapped,” he said. The firm’s portfolio already consists of products like milk in cartons and slim milk in the liquid milk category, while its yoghurt segment consists of Fresh ’n Natural Dahi, Slim Dahi, Jeera Raita and fruit-flavoured yoghurts.

On the company’s marketing strategy, Mr Trivedi said, “We have not been aggressively marketing our dairy products so far. Besides the television campaign for our Fresh ’n Natural Dahi, there really has not been anything else. Though we now intend to increase our focus on marketing.”

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