Groupe Danone may get out of biscuits segment

Mumbai: Groupe Danone is said to be considering exiting the biscuits category in India, due to intense competition from small players leading to low margins.

The company has said that it would explore all options to bring an amicable end to the dispute with its partners, the Mumbai-based Wadia group.

Apart from Europe the share of biscuits in the company''s global portfolio has been falling. Europe accounts for 80 per cent of the company''s biscuit sales.

Executives said that if the company exited the Indian market, Groupe Danone would sign a non-compete agreement with its Indian partner and stay out of biscuits in the country.
Danone''s biscuits portfolio has not been contributing much to its global sales. In 1996, nine categories, including pastas and glass containers, contributed to the company''s turnover, but biscuits contributed a mere 20 per cent.

The biscuits portfolio contributes only 15 per cent to the total sales. In 2000, biscuits contributed ¤2.3 billion to the group''s global sales, while in 2006, the contribution of biscuits was ¤2.1 billion, even as the company''s biscuits portfolio grew by three per cent last year.

Danone invested in Britannia Industries in 1990.