Yakult targets nine-fold rise in India sales

Yakult Danone India Ltd, a 50:50 joint venture (JV) between Yakult Honsha of Japan and Danone Group of France, plans a national rollout of its pro-biotic health drink product —Yakult.

The company had started India operations nearly two years with the launch of Yakult in Delhi, Jaipur and Chandigarh markets. The company now plans to launch the product in Mumbai, followed by in other metros and non-metro cities.

The pro-bitoic drink is priced at Rs 10 for a 65 ml pack and will be sold through retail outlets and through direct home delivery. “We have a concept called Yakult Ladies where saleswomen go house-to-house explaining the benefits of the product to consumers. In India, we have 500 Yakult Ladies working for us and we plan to take this number up to 100,” said Anil Chaudhry, chief finance officer, Yakult Danone India.

In India, almost 45-50% of company’s sales are through the home-delivery channel. Almost 2,000 homes in Delhi NCR region receive the product regularly at their homes.
“Internationally, we have 80, 000 Yakult ladies working for the home delivery model,” Chaudhry said.

In Japan and other markets, Yakult has many other pro-biotic products in its portfolio. However in India, it will launch these only after three years. The company invested Rs 148 crore to set up its facility at Sonepat, Haryana and sold only in Delhi NCR in the first year. In 2008-09, it entered Jaipur and Chandigarh.

Currently, Yakult Danone India is selling 15, 000 bottles a day in the markets of Delhi, Jaipur and Chandigarh. “With the phasewise national expansion, we are targeting reaching per day sales of atleast 1, 50, 000 bottles in 3-4 years,” he said.

The pro-biotics foods and drinks market in India is at a very nascent stage. Globally the market is valued at $14 billion. “The Yakult pro-biotic drink contains 6.5 billion live bacteria (lactobascilus). This is good for health and help build immunity. We plan to educate consumers in India on why they should make pro-biotic drinks a part of their daily consumption, however achieving this soon is a challenge,” Chaudry said.

Chaudry said the company has planned significant marketing spends in India and will carry out a number of below-the-line activities, like free sampling, amongst consumers. The company has also roped in celebrity Kajol Devgan as its brand ambassador and will air the TVC (television commercial) this year.

Yakult products are available in 32 countries. The company internationally has a similar JV with Danone for the Vietnam market.