New Delhi: Fonterra, world’s largest dairy exporter, on Wednesday announced a joint venture (JV) with Future Consumer Ltd to produce a range of consumer and food service dairy products.

The JV, Fonterra Future Dairy Partners, would enable New Zealand-based Fonterra to establish its presence in India.

“It (partnership) 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," Fonterra’s Chief Operating Officer Global Consumer and Foodservice Lukas Paravicini said in a statement.

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, he added.

“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," Paravicini said.

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

“We will also use this time to settle in the partnership infrastructure, learn the market and prioritise geographies," he added.

Future Group CEO Kishore Biyani said the association with Fonterra comes at a time when the dairy industry in India is flourishing.

“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," he added.

Future Consumer Ltd Managing Director Ashni Biyani said that through this partnership, the company would be able to reach its customers daily with quality dairy products.