The Bel Group produces popular cheese brands like The Laughing Cow, Kiri, Babybel, Boursin, and Nourish and is also a significant player in the healthy snacking market.
Britannia Industries, which makes biscuits and dairy goods, has formed a joint venture with Bel SA of France and Britannia Dairy Private Limited (BDPL) to create, manufacture, and distribute cheese products in India and other countries.
According to the Economic Times (ET), Bel SA will acquire a 49 percent stake in Britannia’s wholly-owned subsidiary Britannia Dairy Private Limited (BDPL) as part of the joint venture and inject an additional Rs 215 crore into the experience.
According to the reports, the company would change its name to Britannia Bel Foods Private Limited.
The executive vice-chairman and managing director of Britannia Industries, Varun Berry, told ET that the collaboration would open up new opportunities for consumers to enjoy cheese. By partnering with Bel Group, Britannia will supply India with cheeses of world caliber.
BDPL, a Britannia and Bel joint venture in India, will operate a cheese factory in that country. Furthermore, the business stated in a regulatory filing that as part of the JV, BDPL would award equity shares to Britannia and Bel in line with the provisions of the share subscription agreement entered into by Britannia, Bel, and BDPL.
After the arrangement is finalized, Britannia will continue to hold 51% of BDPL, and Bel SA will possess the remaining 49%. At present, BDPL is engaged in the business of marketing, trading, and selling cheese products. BDPL’s revenue of Rs 340 crore in FY 2021-22 represents roughly 2.4% of Britannia Industries’ total revenue.
This JV will manufacture cheese products at a brand-new, state-of-the-art plant in Ranjangaon, Maharashtra. Products will use both the Britannia and The Laughing Cow logos on the packaging.
The joint venture chief executive will be Abhishek Sinha, who formerly served as CBO of the dairy division.
According to Berry, the cheese market is underserved, but the two companies’ collaboration will change that.
“This strategic alliance with Britannia in India is a new step for Bel Group’s development in Asia,” stated Cecile Beloit, CEO of BEL Group. In India, where we have been operating in “startup mode” for the past four years, we plan to increase our pace.
Amul, Britannia, Mother Dairy, and Govardhan dominate India’s roughly Rs 4,000 cr cheese market.
Britannia’s overall net profit increased by 28 percent year over year, reaching Rs 490 crore for the quarter ending in September 2022. The company that bakes Good Day and Nutrichoice biscuits had a 21 percent growth in consolidated revenue from operations, to Rs 4,379.61 crore, in the most recent quarter compared to the same period a year ago.