Tata Consumer Products is closing in on a potential acquisition of Danone’s India nutraceuticals and specialised nutrition portfolio, according to people tracking the discussions. Talks that began earlier this year have picked up pace in recent weeks, with both sides nearing agreement on valuation. If sealed, the deal would mark Tata Consumer’s biggest push yet into the fast-expanding wellness and nutrition economy.
The company behind Tata Tea has been steadily stitching together a wider health-focused portfolio through buys such as Soulfull, Capital Foods and Organic India. It has also been building out categories like functional drinks, organic staples and protein-rich foods, sectors that have seen double-digit growth since the pandemic reshaped consumer priorities.
Industry analysts say the move will place Tata Consumer in direct competition with global heavyweights such as Nestlé and Abbott in the premium nutrition space. Abneesh Roy of Nuvama Institutional Equities noted that while the Tata brand commands trust, especially in sensitive categories like infant nutrition, the segment demands strict compliance and deep expertise. He added that protein has become one of the fiercest battlegrounds in India’s fast-moving consumer goods sector, with nearly every major company entering the field.
Danone’s portfolio in India, built largely around its Rs 1,576 crore acquisition of Wockhardt’s nutrition business, includes well-known brands such as Farex, Dexolac and Protinex. These categories have consistently outpaced overall packaged foods growth, driven by rising interest in preventive health and stronger demand for immune-supporting products. India’s demographics amplify this opportunity, with about 23 million births each year and a rapidly ageing population projected to reach nearly 500 million people above 65 by 2030.
Over the past decade, Danone has pivoted repeatedly in India after exiting its dairy venture in 2018. A sale to Tata Consumer would signal another turning point for the French group and potentially give the Tata conglomerate a deeper foothold in one of the country’s most active consumer markets.
