Biscuits major Britannia Industries today said it was acquiring 49 per cent stake in Snacko Bisc, along with the trademark 'Nutrine' in respect of only the bakery products and several other trademarks, copyrights and designs. The transaction was expected to be completed by end of 2001, the company said in a notice to the Bombay Stock Exchange. The company has also agreed in-principle to set up a joint venture company, in India, with the New Zealand Dairy Board's.
While NZDB and Britannia will hold 49 per cent each, the balance 2 per cent will be held by business associates, the company said in a press release. The dairy business of Britannia, which accounts for approximately 13 per cent of its Rs 1,332-crore turnover, will be hived off into the joint venture.
The venture will use Britannia's current "co-packers, distribution and marketing network".
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Britannia had diversified into dairy products in 1997 and is present in the cheese, dairy whitener, butter, ghee, liquid milk and flavoured milk segments under the Britannia Milkman brand name.
The company has identified New Zealand Milk as its strategic partner because the latter will provide the necessary research and development support as well as international experience in the dairy field.
Britannia's proposed acquisition of Snacko Bisc follows the recent acquisition of 49 per cent stake in the Bangalore-based Kwality Biscuits for Rs 30 crore.
Britannia has in recent years revamped its corporate image and marketing strategy and introduced a number of new biscuits brands to cater to various segments. Britannia is a leader in the Rs 4,000 crore biscuits market with a share of about 15 per cent.
Britannia's biscuit brands include Tiger, 50:50, Mariegold, Bourbon, Pure Magic, Nice, Milk Bikis, Little hearts, Glucose D and Circus.
According to analysts, Britannia's acquisition comes in the wake of competing multinational Hindustan Lever foraying into the biscuit market.