Nestle taps into Dr. Reddy’s nutra distribution network to boost India reach
The joint venture company, which has yet to be named, is expected to become operational in Q2 of FY25.
The partnership will combine Nestle Health Science’s strengths in nutritional health offerings and Dr. Reddy’s commercial strengths across India.
Both Nestle India and Dr. Reddy’s will license selected nutraceutical brands to the JV company. The brands are mostly targeting metabolic health, general wellness, women’s health, children’s nutrition, and hospital nutrition.
Nestle, for instance, will license dietary supplement brands such as Nature's Bounty, Osteo Bi-Flex, Ester-C, as well as its health science products catered to diabetic, obese patients.
They include Resource High Protein, Optifast, Resource Diabetic, Peptamen, Resource Renal and Resource Dialysis.
The aforementioned products are already available in India, but the JV would help build a robust retail and distribution network, said Nestle India.
“We have been on a journey where we strive to add value to the lives of our consumers through powerful brands and products. This joint venture is another important step in that direction, allowing us to bring our science-backed nutritional solutions to more people across the country.
“Dr. Reddy’s is a trusted name in the pharmaceutical space and shares our commitment to provide access to high quality products. This joint venture will enable us to build a robust retail and distribution network to take our brands closer to consumers and making a meaningful difference to improve the quality of life,” said Suresh Narayanan, chairman and managing director, Nestlé India.
Dr. Reddy’s, on the other hand, will license brands such as the electrolyte drink brand Rebalanz, diabetes-friendly nutrition drink brand Celevida, supplement brands Antoxid, Kidrich-D3, and Becozinc.
Headquartered in Hyderabad, the JV company also looks to introducing the two companies’ nutraceutical brands to other agreed territories beyond just India.
“This joint venture is a novel approach by two companies that have a shared purpose of good health. We are pleased to partner with Nestlé India to bring innovations from the Nestlé Health Science global portfolio to consumers in India.
“This novel approach of leveraging mutually complementary strengths of both parent companies will enable better access and affordability for consumers,” added M.V. Ramana, CEO – branded markets (India & Emerging Markets) at Dr. Reddy’s.
To enhance its distribution strength, Dr. Reddy’s launched a direct-to-consumer (D2C) e-commerce website known as Celevida Wellness last October.
The site largely focuses on selling diabetic-friendly supplements, featuring its in-house brand Celevida, as well as brands from other companies, including Diabliss and Wellbeing Nutrition.
Nestle India has also been trying to increase its distribution network for its FMCG products, up from four million outlets, including direct and indirect distribution, to 5.1 million outlets in 2022.
