Britannia Industries enters into a JV with French cheese maker Bel SA

It sells 49 per cent stake in Britannia Dairy for Rs 262 crore

Britannia Industries and Bel SA, a French cheese maker, have announced that they have entered into a joint venture (JV) to develop,  manufacture,  market,  distribute,  trade and sell cheese products in India and certain other territories, it said in a stock exchange filing.  

Bel shall acquire 49 per cent stake in Britannia’s wholly owned subsidiary BDPL (Britannia Dairy Private Limited) for Rs 262 crore and the entity thereafter shall be renamed as ‘Britannia Bel Foods Private Limited’. The JV has a lock‐in period of  20  years from its effective date for both parties.  

The cheese products will be produced in the JV’s new facility at Ranjangaon, Maharashtra. 

Abhishek Sinha, chief business officer of the dairy business of Britannia is named as the CEO of the JV. 

“The facility is backward-integrated to collect milk from local farmers in the region. The products will be co-branded using the trademarks “Britannia” and “The Laughing Cow” and will be introduced in innovative formats, to ride on the fast-growing cheese category in the country,’ the company said in the release.  

Varun Berry, executive vice-chairman and managing director, Britannia Industries said in the release, “Cheese is an under-penetrated category and this partnership will help expand the nascent but fast-growing cheese category by delivering innovative products and being a leader in fulfilling evolving consumer needs. This JV is also key to Britannia’s vision to be a responsible, total foods company.”

Cecile Beliot, chief executive officer, BEL Group added also said in the release, “Perspectives in India are strong and very promising in the nascent cheese segment. We are proud to partner with Britannia. They have an emblematic brand in India and a powerful distribution system. By combining their expertise with our iconic brand The Laughing Cow , and our know-how and knowledge of cheese products, this joint venture is well positioned to offer to all Indian consumers, delicious, nutritious and accessible cheese products, and become a leader in the fast-growing Indian cheese market.” 

Turnover  of  BDPL  for  FY22 stood at Rs 340 crores; amounting to 2.4 per cent of  the  consolidated  sales  of  Britannia.