The deal will be retitled as Britannia Bel Foods Pvt. Ltd.
As part of the agreement, Bel will acquire 49% of Britannia Dairy Pvt. Ltd (BDPL), with Britannia Industries owning the remaining 51% stake in the joint venture
In order to capitalise on the rising demand for packaged goods in India, Britannia Industries Ltd (BIL) and French cheese manufacturer Bel SA announced on December 1, 2022, that they had formed a joint venture to distribute brands, such as the latter’s The Laughing Cow cheese, in India. According to the terms of the deal, 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.
The joint venture’s new plant in Ranjangaon, Maharashtra, would make cheese, according to a statement released by Britannia the same day. 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.
“Cheese is an under-penetrated market, and our alliance will assist develop the embryonic but fast-growing cheese category by offering new products and becoming a leader in addressing increasing customer expectations,” the two businesses said.
According to Varun Berry, executive vice-chairman and managing director of Britannia Industries, this JV is essential to realising Britannia’s goal of being a responsible, all-encompassing food company. The revenue for BDPL in FY22 was 340 crores. The JV is receiving financial contributions from both partners 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 will be nominated by Bel.
Apart from processed cheese and curd sold under the Dairy Fresh brand in India, Britannia already produces flavour-infused milk under the Winkin Cow name.
Bel distributes 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 marks a new milestone for the group’s expansion in Asia.