Britannia's joint venture with New Zealand's Fonterra Co-operative Group will not affect the positioning of its products under Milkman brand. There will also be no change in the logo or branding of other products. However, the company would look at bringing new products from the Fonterra's shelf later.
"The joint venture would help us in achieving the numero uno position in the dairy segment," Naveen Chopra, marketing manager of Britannia Industries, said.
It is also understood that there will be no immediate change in the oraganisational structure too. P K Malik, who is currently the senior vice-president (dairy division), will be the chief executive officer of the new entity, which will be christened Britannia New Zealand Foods Private Ltd. Britannia and Fonterra will each hold 49 per cent stake while the remaining 2 per cent will be with a strategic business partner.
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Chopra said, "We will definitely introduce new and innovative products. But, before launching any product, we will have to carry out extensive consumer research and would also have to keep in mind the climatic factors."
Under the Foreign Investment Promotion Board laws, if a product is to be introduced in the Indian market, it should be manufactured here. "Fonterra will provide technical know-how to Britannia," Chopra said.
Currently, Britannia's dairy division has products such as processed cheese, dairy whitener and ghee, among others. The company has also entered the liquid milk market which is available in New Delhi, Kolkata, Chandigarh and parts of Haryana.
To push its other product range, the company has undertaken various promotional activities. Of the total advertising budget, more than one-third is spent on promotions and other below-the-line activities.