New Zealand-based dairy co-operative Fonterra has entered a joint venture (JV) agreement with India’s consumer goods company Future Consumer to form a new entity named Fonterra Future Dairy Partners in India.

The new JV company will be engaged in the production of a wide range of consumer and foodservice dairy products and is expected to help fulfil the growing demand for high-quality dairy nutrition across India.

Fonterra Global Consumer and Foodservice chief operating officer Lukas Paravicini said: “It will allow us to prepare the groundwork and make the most of our expertise as we enter the world’s largest and fastest growing dairy industry.

"The first consumer products will be launched by the middle of 2019, using both locally sourced milk and dairy products from New Zealand."

“Consumer demand for dairy in India over the next seven years is set to increase by 82 billion litres, seven times the forecasted growth for China.

“The partnership will be driven by growth through profitability. The initial stages of the partnership will focus on product development and marketing with the right capital investment made during this period.

“The first consumer products will be launched by the middle of 2019, using both locally sourced milk and dairy products from New Zealand.”

Paravicini also noted that a new JV firm will allow Fonterra to establish its presence in India.

Future Consumer is part of the Future Group, which is currently planning to develop a new retail experience for consumers in the country.

Future Group CEO Kishore Biyani said: “Consumption of milk and other dairy products in India are increasing and will continue to receive strong demand.

“With Fonterra, Future Consumer will enhance its food and FMCG portfolio and will offer a variety of dairy products, which are high in demand and consumed daily.”