The Hindu Business Line : Yakult Danone opens probiotics factory

Sonepat (Haryana), Jan 18 Yakult Danone India (YDI), a 50:50 joint venture company between Japanese firm Yakult Honsha and French dairy major Danone, has unveiled India’s first probiotics factory.

Set up with an investment of Rs 136 crore, the unit located at Rai Food Park, will exclusively manufacture Yakult, a probiotic milk drink.

The plant has a total capacity of one million bottles per day and the company is looking to enhance its capacity utilisation in a phased manner, Mr Jacques Vincent, Vice-Chairman and Chief Operating Officer of Danone, told newspersons at the factory inauguration.

Probiotics are dietary supplements containing potentially beneficial bacteria or yeast, with lactic acid bacteria as the most common microbes used.

Initially, the product will be available in Delhi and the National Capital Region. “We will gradually roll it out in other major metros and cities,” Mr N. Tsuritani, Senior Managing Director and Head International Business Division, Yakult Honsha, said. The company also mulls pumping in an additional Rs 100 crore over the next 3-4 years to expand its presence in the market, he said, adding that while globally the market for probiotic food has matured, in India it is still at a nascent stage.

YDI expects to break even in the next four years and is targeting revenues of Rs 100 crore-plus by then.

The company is looking at a two-way distribution model besides below-the-line activities to build a customer base. Apart from the retail route, the dairy products maker has introduced a home delivery system through ‘Yakult Ladies’ in a door-to-door campaign to help consumers understand the health benefits of the product.

The factory was inaugurated by the Minister of State for Food Processing Industries, Mr Subodh Kant Sahai.

More Stories on : Alliances & Joint Ventures | Food & Dairy Products

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page