Evergrande Group has acquired New Zealand's Cowala Dairy in September and is importing its infant formula to China as part of its plan to capitalise on China's huge demand for foreign dairy products after a series of tainted milk scandals.

It is reported that the Chinese company also intends to employ foreign advanced technology to build a dairy manufacturing facility in China, and producesits own dairy products in the near future.

According to Xinhua news agency, China's food quality regulatorhas granted entry to more than 1,000 foreign dairy producers, including 41infant formula producers, further intensify the already highlycompetitive industry.

As of now, 40% of the Chinese infant formula market is controlled by foreign companies, which amountsto about US$16 billion. The figure surges to 80% in tier one cities such as Beijing and Shanghai.