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In order to capitalise on the expanding demand for packaged foods in India, Britannia Industries Ltd (BIL) and French cheese manufacturer Bel SA said on Tuesday that they had formed a joint venture to provide brands, such as the latter's The Laughing Cow cheese, in India. According to the terms of the agreement, Bel will purchase 49% of the joint venture's shares in Britannia Dairy Pvt. Ltd. (BDPL), with Britannia Industries holding the remaining 51%. The organization's new name will be Britannia Bel Foods Pvt. Ltd.
According to a statement released by Britannia on Tuesday, cheese would be made in the joint venture's new facility in Ranjangaon, Maharashtra. The joint venture's CEO is Abhishek Sinha, chief business officer of Britannia's dairy division. Britannia and The Laughing Cow will be used as co-branding on the goods.
The two businesses will cooperate to develop the nation's cheese market.
"Cheese is an under-penetrated area, and this alliance will assist grow the young but rapidly expanding cheese category by offering cutting-edge goods and being a pioneer in meeting changing customer needs. According to Varun Berry, executive vice-chairman and managing director of Britannia Industries, this JV is essential to realizing Britannia's goal of becoming a responsible, all-encompassing food company. The revenue for BDPL in FY22 was 340 crore. The JV is receiving financial contributions from both parties for business needs. In addition, Bel paid 262 crores for a share in Britannia.
The BDPL board will have five members, three of whom will be selected by Britannia and two by Bel, and who together will make up the company.
Apart from processed cheese and curd sold under the Dairy Fresh brand in India, Britannia already produces flavor-infused milk under the Winkin Cow name.
Bel sells cheese under the Laughing Cow, Boursin, Kiri, and other names. Bel creates more than 30 domestic and foreign trademarks that are distributed in more than 130 nations.
According to Cécile Béliot, CEO of Bel Group, the relationship with Britannia is a new milestone for the group's expansion in Asia.
30-11-2022
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