After bidding adieu to Britannia, Danone again in food space

NEW DELHI: After selling its entire stake in Britannia Industries to the Nusli Wadia Group earlier this year, French major Groupe Danone SA may again enter the food product space, including biscuits, in India.

The Foreign Investment Promotion Board recently approved a proposal from the Paris-based company to operate in areas like biscuits, mineral water, cereals, dairy, baby food and medical nutrition products, according to sources.

Danone may go it alone or operate through its existing or new JVs in these sectors. The proposal will now go to Finance Minister Pranab Mukherjee for final approval.

After bickering for over four years, Danone had earlier this year sold its entire stake in Britannia Industries Ltd to the Nusli Wadia Group.

The deal had resolved a protracted row between Danone and the Wadias -- who run the Bombay Dyeing group -- over the French food company's plans to launch products on its own in the Indian market.

Danone got the FIPB approval now after its earlier joint venture partners like the Wadias gave no-objection letters for the French firm's proposal.