Nestlé India to buy 26% stake in dairy company Indocon Agro
Nestlé India has entered into an agreement to acquire 26% stake in dairy company Indocon Agro and Allied Activities, which is engaged in milk collection business in Western India.
According to the company, the deal is expected to create shared value with farmers engaged in milk.
Nestlé India has its own manufacturing facilities at Moga in Punjab and Samalkha in Haryana. The company employs 7,000 people in India and its products are sold in 40 lakh stores across the country.
The FMCG major has contract supply arrangements for the West and South markets with Baramati-based Schreiber Dynamix Dairies and Hyderabad-based Heritage Foods for its curd and ultra high temperature milk.
The company also procures milk powder from local players such as Sterling Agro and VRS Foods.
A spokesperson of the beverage company was quoted by The Hindu Business Line as saying that the transaction with Indocon was of 'strategic and long-term' nature.
Nestlé India sells milk, yogurt, Nescafe brand coffee beverages and other drinks.