Britannia enters JV with Bel SA; to sell 49% stake in Britannia Dairy

Britannia Industries Limited on Tuesday announced that it has entered into a joint venture agreement with French company Bel SA, and Britannia Dairy Private Limited (BDPL) to develop, manufacturing, marketing, distribution, trading and selling, of cheese products in India and certain territories.

As a part of the joint venture, Britannia shall sell 49 per cent of its equity stake in Britannia Dairy Pvt Ltd to Bel SA for ₹262 crore in accordance with the terms of Share Purchase Agreement entered between them.

“BDPL will become a Joint Venture Company (‘JV Company’) of Britannia and Bel in India which will carry out/undertake the cheese business in the Territory. Further, as a part of the JVA, BDPL will allot equity shares to Britannia and Bel, in accordance with the terms of the Share Subscription Agreement entered between Britannia, Bel and BDPL, on 29th November 2022,” the company said in its regulatory filing.

As an effect of this transfer, Bel shall hold 49 per cent of BDPL and the balance 51 per cent shall continue to be held by Britannia.

“Britannia’s partnership with Bel Group will enable consumers to enjoy international quality cheese products that will now be made in India.This JV will help the milk farmers of Maharashtra gain consistent and greater market access through our yield-optimized, milk collection initiative that has grown significantly over the last 3 years,” said Varun Berry, Executive Vice-Chairman and MD, Britannia Industries.

“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,” he added.

Britannia Dairy Private Limited turnover for FY21-22 was at ₹340 crore, which includes cheese turnover of ₹207 crore, while the net worth of BDPL as on 31 March, 2022 was ₹130 crore.

Wadia Group-backed Britannia Industries hit a new 52-week high on Tuesday tracking broad-based buying in FMCG stocks. Britannia climbed more than 2 per cent and crossed the ₹4,300 mark. Britannia shares have jumped by nearly 19 per cent year-to-date.