Britannia will expand its cheese business with a French partner fivefold

Britannia Industries Ltd, a producer of packaged foods, anticipates that its cheese business will increase fivefold to INR 1,250 crore over the following five years, helped by an anticipated growth in product variety as a result of a joint venture with French cheese producer Bel.

Britannia and Bel formed a cooperation earlier this week to provide a variety of cheese products for the Indian market. The joint venture will be renamed Britannia Bel Foods Pvt. Ltd. and Bel will purchase a 49% stake in Britannia's wholly-owned subsidiary Britannia Dairy Pvt. Ltd. as part of the terms of the agreement.

To tap into India's modest but expanding cheese market, the company will produce and distribute co-branded goods under the "Britannia" and "The Laughing Cow" trademarks.

The cooperation will provide a variety of products in an effort to grow the cheese market in India. Bel markets cheese internationally under the Laughing Cow, Kiri, Babybel, and Boursin brands. "Cheese makes up around 50% of our dairy business, and this JV is about cheese. The secret is to increase this portfolio of cheese five times in five years. It’s about INR 250 crore right now, executive vice-chairman and managing director of Britannia, stated.

Undoubtedly, Britannia's dairy division exceeded 500 crores in sales in FY22, with cheese accounting for roughly half of that total. Cookies and biscuits are also a part of its main product line. Its dairy product line also includes packaged curd and beverages made with milk. Britannia's standalone operating revenue for the twelve months ending March 31 was INR 13,371.62 crore.

Britannia has been expanding its market share in the packaged food industry by collaborating with foreign partners to import goods into India. In order to market packaged croissants in India, it established a joint venture with Greece's Chipita in 2017.

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