Tata Consumer in advanced talks to acquire Danone’s India nutrition portfolio

New Delhi: Tata Consumer Products (TCPL) is reportedly in advanced discussions to acquire Danone SA’s India nutraceuticals and specialised nutrition business as part of its expansion into the fast-growing wellness and nutrition market, according to a news report. 

An acquisition would allow the maker of Tata Tea to enter the value-added nutrition segment, competing with companies such as Nestlé and Abbott. TCPL has been building a broader wellness ecosystem through previous acquisitions, including Soulfull, Capital Foods and Organic India, as well as expanding into protein-rich foods, organic staples and functional beverages.

Abneesh Roy, executive director at brokerage Nuvama Institutional Equities, told Economic Times, “The company has been on the prowl for acquisitions for several years to enter segments beyond core staples and tea.”

On the protein market, he said, “Protein has emerged as one of the hottest battlegrounds across FMCG, with almost every major player entering the segment.”

Danone and TCPL did not respond to queries. Tata Consumer managing director Sunil D’Souza has consistently said he will not overpay for brands or get drawn into valuation games, telling Economic Times previously that he has a strong “middle-class mindset.”

In India, protein consumption is largely in powder form, primarily targeting gym-goers. Post-pandemic, the health food industry has seen strong growth, with dairy companies such as Amul entering the protein market two years ago. 

TCPL has also ventured into plant-based meat products under the brand Tata Simply Better, offering nuggets and burger patties. Other companies, including ITC and Nestlé India, have introduced plant-based protein offerings as well.

In India, Danone’s nutrition portfolio, acquired from Wockhardt for Rs1,576 crore, includes brands such as Farex, Dexolac and Protinex, covering baby nutrition and adult protein supplements. These segments have outpaced the broader packaged foods market, supported by a growing focus on preventive health and immunity-boosting products.

India’s demographic trends, with 23 million births annually and nearly half a billion people expected to turn 65 by 2030, make it a key market for specialised nutrition.

Danone’s India operations have undergone several strategic pivots, including ending its 13-year biscuits partnership with Britannia in 2009, acquiring Wockhardt’s nutrition portfolio in 2012, and exiting the dairy segment in 2018 after facing competition from large cooperatives such as Amul and Mother Dairy.