Britannia teams up with Bel Foods to boost cheese
Britannia and Bel Foods have inked an alliance for the next 20 years. This venture is going to focus on the production and sales of cheese in India.
15 Dec 2022 | By Disha Chakraborty
Britannia and Bel Foods to boost cheese industry in India
The food packaging market is estimated to grow from 4 billion tons to 5.3 billion tons in the next five years. This would record a 14% growth in the market. The recent company projections expect the cheese industry to grow to Rs 1,250 crores in the next five years.
Owing to the current situation, Varun Berry, executive vice-chairman and managing director, Britannia, said the company faced “slight" input cost pressures this quarter with the steepest inflation in milk. Palm oil has come down quite steeply, he added. “So that’s giving us some relief. Wheat is still going up, but sugar has been fairly steady."
Britannia, and a French cheese maker, Bel Foods have come to an arrangement where Bel will acquire 49% stake in Britannia Dairy. The new establishment shall be named as Britannia Bel Foods Private Limited.
“This joint venture is about cheese, and cheese is about 50% of our dairy portfolio. The trick is to grow this cheese portfolio five times in five years. It’s about Rs 250 Cr right now," said Berry.
Cecile Beliot, chief executive officer, Bel Group said in a 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.”
This story was filed by WhatPackaging? magazine on 14 December 2022 when the Britannia share price was down by 0.38% from the previous closing price of Rs 4,426.55. Based on investor forecasts, a long-term increase is expected, and the Britannia Industries stock price prognosis for 2027 is rs 5549.844. And so, with a five-year investment, the revenue is expected to be around +25.25%. The 100-year old company is one of India's leading food companies with annual revenues in excess of Rs 9000 crore.