A joint venture of one of India’s leading food companies, Britannia Industries Ltd. and France-based multinational cheese maker, Bel Group, was announced on Thursday.
Both the businesses confirmed to have partnered for the joint venture to cater to Indian consumers a premium selection of wholesome, delectable, and affordable cheese products, while keeping in mind the needs of consumers in Tier 2 and Tier 3 cities.
Commenting on the Joint venture, Varun Berry, Executive Vice-Chairman and Managing Director, Britannia Industries, said, “There was a time when cheese was available only in the Armed Forces canteens. Subsequently, cheese was made popular by the quick service restaurants and customers could enjoy its mouthwatering flavour. Cheese has emerged as a fast-growing category in the country. However, it’s still under-penetrated with only 5 per cent of Indian households consuming cheese. It’s very important for players like us to increase this penetration as we go forward. “
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In this joint venture, Britannia Industries will hold 51 per cent stake while Bel Group will hold 49 per cent.
Bel will purchase a 49 per cent stake in BDPL, a fully owned subsidiary of Britannia (Britannia Dairy Private Limited). The organisation will then go as “Britannia Bel Foods Private Limited.” The cheese products will be manufactured under the joint venture at a brand-new cutting-edge facility in Ranjangaon, Maharashtra.
Thus, the companies will be able to maintain a continuous and high-quality milk production, thanks to the facility’s backward integration, which will allow them to gather milk from roughly 2,850 local farmers in the area.
Additionally, to ensure that they follow the proper procedures, Britannia’s dairy farmers welfare programme is helping farmers in Maharashtra to improve the quality of their milk and the quantity of their produce.
Britannia and The Laughing Cow trademarks will be used to co-brand the products, which will be released in innovative formats, to ride on the fast-growing cheese category in the country.
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