Tata Consumer in talks to acquire Danone SA’s India business: Report

Tata Consumer Products (TCPL) is reportedly in advanced discussions to acquire Danone SA’s India nutraceuticals and specialised nutrition portfolio, according to people familiar with ongoing negotiations. This move forms part of TCPL’s broader strategy to expand its presence in India’s fast-growing wellness and nutrition market, which is seeing heightened interest due to demographic trends and shifting consumer preferences.

Negotiations taking place over the past few months gained momentum recently, one of the persons said. Both sides are said to be close to agreeing on valuation.

An acquisition would provide TCPL, the maker of Tata Tea, an entry point into the value-added nutrition segment – allowing it to compete with established multinational companies such as Nestlé and Abbott, the report added. Danone’s India business earns most of its revenue from the nutrition portfolio, which includes brands like Farex, Dexolac, and Protinex in the baby nutrition and adult protein supplements categories.

These segments have consistently outpaced the broader packaged foods sector, driven by increased emphasis on health and immunity-boosting products. Factors such as India’s annual 23 million births and a rapidly aging population – nearly half a billion people expected to turn 65 by 2030 – make the country a core market for specialised nutrition products.

TCPL has been building a broader wellness ecosystem, largely through acquisitions such as Soulfull, Capital Foods, and Organic India, as well as expanding into protein-rich foods, organic staples, and functional beverages. 

Tata Consumer managing director Sunil D’Souza has consistently said he will not overpay for brands or get drawn into valuation games, telling the daily previously that he has a strong “middle-class mindset.”