Danone edifice new Indian crew

NEW DELHI/BANGALORE: Amid its blow-hot-blow-cold relationship with the Wadias, French food giant Groupe Danone is building its India team for its independent dairy plans. The company has hired former chief financial officer of Max India, Sudhir Dasgupta, as its CFO and former regional sales head (south) of Marico, Vibhu Nanda, as head of sales and marketing.

The French company is also said to have hired a senior executive from a food company as the marketing head for a joint venture in the country, but this could not be confirmed.

A Danone source said a search is on for three vertical heads even as its existing joint venture partner in Britannia, the Nusli Wadia Group, has raised objections to its independent plans, quoting the government law Press Note 1 (2005). The law forbids a foreign company to pursue its own plans in similar businesses without the consent of the Indian partner in an existing joint venture.

But Danone has argued through a series of letters to the government that it need not seek permission from the Wadias.
Danone Foods & Beverages, the company formed for the French group’s fresh India plans, has a senior Danone executive, Jochen Ebert, as its CEO. Mr Ebert relocated to India last year to spearhead the company’s market research and business development.

While Danone declined to comment on its recruitment drive, it’s learnt that the company is in talks with mid-sized co-packers to roll out its dairy products. It is likely that the French company would hit the market with Indianised offerings like dahi, which has a short shelf-life but requires investments for a robust supply chain and cold chain back-up.

Danone carries traditional dairy expertise in yoghurt and yoghurt-based drinks products. However, its research centre in China has been developing products that fit into the Asian context.

In fact, Groupe Danone sought the government’s permission to set up Danone Foods & Beverages in April 1996. After looking at the possibility of launching yoghurt drinks, frozen desserts and cheese in India, it shelved the project indefinitely.

Interestingly, when it applied for Foreign Investment Promotion Board (FIPB) approval more than a decade ago, it had mentioned about the existing JV with Wadia Group and showcased a no-objection letter from the latter.