Fonterra announced it will exit its investment in Britannia New Zealand Foods Pvt Ltd, a joint venture based in India, and pass its stake to partner Britannia Ltd as it no longer fits the company's strategic priorities.

Mark Wilson, Fonterra's Managing Director Asia Middle East, said the company has been keeping a close watch over its investments to ensure they reflect key strategic priorities.

Wilson said while there is much growth in India, the local milk supply is fragmented and requires significant development and investment in order to deliver an efficient supply chain for high quality fresh milk.

''Investing in India's consumer dairy market is not a core priority for Fonterra at this time,'' Wilson said.

Wilson added that Fonterra would continue to supply dairy ingredients to key customers in the Indian market and would keep an active interest in any future opportunities.