Britannia to form JV with Greek baker Chipita

Britannia Industries in a BSE filing clarified today that it has entered into a joint venture (JV) with Greek baker Chipita and also signed an MoU with the latter for exploring business opportunities.

Chipita is a Greek baker having food products across various categories such as croissants, cakes, biscuits, cakes and confectioneries and has entered India four years ago with confectionery brand Feniti.

Britannia will likely hold majority stake in the JV, which will mark initial manufacturing investment of about $11 million. The new facilities will be built near existing facilities to minimise the logistics cost.

Britannia Industries Ltd posted 5.6 per cent YoY growth in revenues, which were deeply impacted by demonitisation. The bottomline growth also remained low at 4.6 per cent YoY.

Britannia Industries Ltd. stock opened today at Rs 3270 and fell marginally to close at Rs 3236.