Britannia to sell ready to eat croissants, forms joint venture with a Greek company

MUMBAI | AHMEDABAD | RAJKOT – Britannia Industries Ltd has formed a joint-venture company in 60:40 ratio with Greek confectioner and baker – Chipita SA with a lock-in period for 10 years, to serve ready to eat croissants and other products as agreed upon by both players, Britannia and Chipita together will invest 1 billion (100 crore) rupees in in phase-1 of the joint-venture company Britchip Foods Ltd, the Britannia Industries statement said.

Both companies have agreed for appointment of minimum five members and maximum 10 members on joint venture company board and shall have rights to appoint directors in their agreed equity proportion, unanimous consent of both the companies will be required for issuance of equity shares or debt instruments convertible in equity shares, the statement said.

Both the companies shall enter into ancillary agreements such as technology license, brand license, support services and distribution in accordance with terms of joint-venture agreement, the parties to the joint-venture agreement are not related to promoters / promoters group / group companies in any manner, the statement said.

Britannia LogoBritannia Industries, one of the flagship consumer brands owned by Wadia Group has a vide portfolio of bakery and dairy products including biscuits, breads, cakes, rusks, butter, cheese, dairy whitener and ghee.

Chipita SA is a Athens (Greece) headquartered company established in 1973 as a company producing and marketing savoury snacks, main products back then were our Extra cheese-flavoured corn snacks, subsequently followed as of 1988 by potato chips. Today the company sells vide range of snacks, bakery and confectionary products including croissants, dough products, cakes, biscuits, bake rolls, pizzeti, confectionary, jams, potato chips, extruded snacks, according the company website.

chipita_logo280x280Chipita has been operating outside Greece since 1995 by setting up manufacturing plants in Bulgaria, Portugal and Egypt, followed by Poland, Romania, Russia and Saudi Arabia and more recently India, and Turkey. At the same time, Chipita also set up commercial offices in six countries including Czech Republic, Germany, Hungary, Serbia, Slovakia and Ukraine.

In India, the Chipita manufacturing facility is located at Mumbai and the Mumbai office of Chipita India Pvt Ltd is located at Alpha building, 304, Central Avenue, Hiranandani Business Park, Powai, Mumbai 400076, India. Chipita produces goods at 17 manufacturing plants in 9 different countries and same are delivered to consumers in a total of 66 countries, either directly or through strategic partnerships.

The joint venture company will initially issue equity shares to both the parties as agreed in equity proportion at par value of 10 rupees per equity share and Britannia has the right of first refusal in case Chipita intends to transfer its shares after the expiry of lock-in period of 10 years, the statement said.

Shares of Britannia Industries ended in green zone on positive counters on the two leading Indian bourses – BSE and NSE.


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