INDIA – French firm Groupe Danone and Japan’s Yakult Honsha have announced plans for a joint venture in India. The new company, to be called Yakult Danone India Private Ltd, will develop the Indian market for probiotics.

With a fast-growing population, currently reaching one billion, India has enormous potential. Its economy grew by around 7% in 2004 and the country has a long tradition in dairy products. The merger means the new company is likely to become India’s leading producer of probiotics.

The teamwork between Groupe Danone and Yakult Honsha began last year when the two companies agreed to join forces to reinforce their leadership in probiotics. The alliance will also strengthen joint efforts in research and development and raise awareness of probiotics around the world through the Global Probiotics Council and the establishment of joint working groups.

The Yakult brand products will be introduced at the end of 2005, and Danone probiotic products may be added later.