DLG teams up with Prabhat Dairy for India play

Europe’s second-largest farm products company DLG is entering India in partnership with the publicly listed Prabhat Dairy as part of its strategy to expand in the fast-growing animal feed market.

DLG’s India foray follows the recent consolidation deals in the global animal feeds business — with Archer Daniels Midland (ADM) acquiring France’s Neovia, Tyson buying Proteins Inc and Cargill snapping up Integral Nutricao in Brazil. All the three companies — ADM, Tyson, and Cargill — have a play in India’s animal nutrition sector, which is expected to touch $30 billion by the end of this decade.

Headquartered in Copenhagen, Denmark, DLG has been looking to expand its geographic footprint and has been in talks with multiple Indian players. However, discussions with Prabhat progressed significantly with the two now joining hands for the animal feed business. Prabhat already has a presence in this space and the alliance with DLG will help the former to scale up the business. Besides, superior quality animal nutrition products will help in increasing milk yield, something that will boost Prabhat’s mainstay dairy business, which includes pasteurized milk, flavored milk, clarified butter and cheese. Prabhat declined to comment.

Started in 1998, Prabhat, with a turnover of Rs 1,557 crore in fiscal 2018, counts Canada’s Ontario Pension and Rabo India as its investors. The Sarang Nirmal family plans to increase the turnover of Prabhat to Rs 2,000 crore by the end of this decade and the DLG alliance will play a role to achieve the target.

Source:-https://retail.economictimes.indiatimes.com/news/food-entertainment/grocery/dlg-teams-up-with-prabhat-dairy-for-india-play/67375525