Maharashtra based Parag Milk Foods Ltd will be acquiring French food giant Danone’s Indian manufacturing facility for Rs 30 crore ($4.6 million). Parag operates its manufacturing facilities in Pune and Andhra Pradesh.
According to Parag Milk, the purchase of Danone Foods and Beverages India’s facility at Rai in Haryana’s Sonepat area was aimed at expanding its presence in the northern part of the country. The facility produces curd, yogurt and other related products.
Danone had announced its exit from the dairy business in India in January. The company intends to focus instead on its nascent nutrition business in the country.
The company attributed the decision to the fact that its dairy and related units were making minimal contributions to annual revenue. The Sonepat facility subsequently stopped producing fresh dairy products.