The reports note that Danone is said to have quoted an acquisition cost of USD 1.2 billion for its entire portfolio
After Danone India failed to align with the strategic expectations of Tata Consumer Products or TCPL, the deal talks involving both companies have hit a roadblock, as per media reports. Danone is said to have quoted an acquisition cost of USD 1.2 billion for its entire portfolio.
TCPL was reportedly in advanced talks to acquire Danone India’s nutraceuticals and specialised nutrition portfolio with products such as Protinex, marking a deeper push into the fast-growing wellness and protein categories. The protein segment has emerged as a major battleground in FMCG, with rising demand for preventive health and immunity-led products.
Danone’s India portfolio, acquired from Wockhardt in 2012 and focused on baby and adult nutrition, has seen stronger growth than the broader packaged foods market, as per ICICI Direct Research. The acquisition would strengthen TCPL’s wellness ecosystem, complementing recent buys such as Soulfull, Capital Foods and Organic India.
ICICI Direct Research earlier stated that India’s nutraceuticals market, valued at around Rs 55,000 crore, continues to grow steadily with structurally higher margins than traditional FMCG categories. The overall nutraceuticals market in India is expected to continue growing at 15 per cent compounded annual growth rate (CAGR).
The potential acquisition of Danone’s specialised nutrition portfolio, which includes Protinex, a leading brand in adult nutrition, would strengthen TCPL’s position in this high-margin space, it said. The report added that TCPL has been scaling additional growth engines through its growth businesses, which now contribute around 32 per cent of its portfolio. Recent acquisitions such as Organic India, centred on farm-fresh and nutrition-led offerings, have recorded double-digit growth, validating TCPL’s strategic focus on wellness, it mentioned.
