Future Group diary JV targets Rs 6,000 cr topline in 5 yrs
Fonterra Future Dairy, the equal joint venture between Future Consumer, a part of the Kishore Biyani-led Future Group, and the New Zealand-based dairy major Fonterra, is expecting a revenue of Rs 6,000 crore and become one of top four players over the four-five years. The companies had announced the joint venture last year and on Wednesday launched their consumer brand Dreamery that will be launched in the western states initially and then rolled out in other states over the next 24 months.
The company has launched toned milk, milkshakes and curd and will be launching a new product every quarter. "If you look at our retail business, 8-10 percent sales come from dairy products. It is a very important category for us. We've a target of selling 60-70 percent volume from our own brands and without dairy, we can't achieve that," Future Group founder Kishore Biyani told reporters.
Noting that there is an unmet demand for dairy products, he said this joint venture will be the most valuable asset we create for us in the long term wherein we will be creating niche products which cannot be compared with Amul. Fonterra Future Dairy would be focusing more on the value-added segment that is expected to grow 50 percent faster than the dairy sector and so is milk intake which is expected to rise 42 percent from 196 billion litres now to 278 billion litres over the next seven years.
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