Britannia Regains Taste for Tie-ups, may Bake a JV with Greece’s Chipita

  • Britannia industries have decided to enter into joint venture with Greek baker chipita to cater to the rising demand of baked products in urban market.
  • “We’ve signed a non-binding MoU and are working towards formalizing a joint venture. We see immense scale through this partnership, since the categories are highly scalable and are bridge products between biscuits, chocolates and fresh bakery, at competitive prices,” said Britannia managing director Varun Berry.
  • The joint venture is planning to infuse cost effectiveness strategy by setting up the new facilities next to its plants to optimize logistics cost, and leverage its existing strengths of supply-chain and distribution network
  • After the dissolution of tie-up with New Zealand in 2009 due to undesirable market response and losses, it is the first Nusli Wadia-promoted Britannia’s joint venture with Chipita after eight years.
  • “This partnership gives us a long runway for aggressive growth in a completely new category,” Berry said
  • According to a Euromonitor report, savory snacks in India are expected to register a 12% compounded annual growth rate over until 2020, with sales reaching Rs 445 billion. This growth, the report said, will be driven by increase in consumer’s purchasing power, product innovation and expansion in lower tier cities and rural areas.
Source: http://bit.ly/2lAWJKa

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