Tata Consumer Products (TCPL) is in advanced talks to acquire Danone SA’s India nutraceuticals and specialised-nutrition business. The negotiations, ongoing for several months, have recently accelerated, and both sides are close to finalising a valuation.
If completed, the acquisition would give Tata Consumer a foothold in the value-added nutrition segment, allowing the company to compete with established players such as Nestlé India and Abbott in categories like baby nutrition and adult protein supplements.
Danone India’s nutrition business — which the French company built largely through its 2012 acquisition of the nutrition portfolio of another company — generates most of its revenue from brands including Farex, Dexolac and Protinex.
TCPL has in recent years sought to expand beyond its core staples and tea business, building a broader wellness-oriented ecosystem. Its growth strategy already includes acquisitions such as Soulfull, Capital Foods and Organic India, along with ventures into protein-rich foods, functional beverages and organic staples.
Industry analysts note that while the nutrition and nutraceutical segment offers higher growth potential and rising demand driven by health, preventive care and immunity-oriented consumption, entering infant nutrition and specialised nutrition will not be easy — the segment remains highly regulated and competition is strong.
Demographic trends — including India’s roughly 23 million annual births and a rapidly ageing population expected to include nearly half a billion people 65 or older by 2030 — make the specialised-nutrition market an attractive long-term opportunity.
