Britannia Industries Limited on Tuesday announced a joint venture agreement with Bel SA, France (Bel) and its wholly owned subsidiary Britannia Dairy Private Limited (BDPL), to undertake the development, manufacturing, marketing, distribution, trading and selling of cheese products in India and certain other countries.

Britannia said as part of the JVA, it will sell and transfer 49 per cent of its equity stake in BDPL to Bel in accordance with the terms of the share purchase agreement entered between Britannia and Bel. According to regulatory filings, Bel’s cost of acquisition for its stake in BDPL stood at ₹206.5 crore, while for Britannia Industries it was ₹214.9 crore. In FY22, BDPL’s turnover stood at ₹340 crore.

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Bel, a Société Anonyme, (SA), is a French public limited company, which sells cheese and other snacking products. Its portfolio of differentiated brands includes products such as The Laughing Cow, Kiri, Boursin, Nurishh, Pom’Potes, and more. In 2021, the company generated sales of €3.38 billion.

The board

“Bel shall become the legal and beneficial owner of 49 per cent of the entire issued, subscribed and paid‐up equity share capital of BDPL and the balance 51 per cent shall continue to be held by Britannia. BDPL will become a JV company of Britannia and Bel in India which will carry out or undertake the cheese business in the territory. Further, as a part of the JVA, BDPL will allot equity shares to Britannia and Bel, in accordance with the terms of the share subscription agreement entered among Britannia, Bel and BDPL,” said the company in an exchange filing.

The board shall consist of five directors, said the company. “The JVA does not have a defined term, however, a lock‐in period of 20 years from its effective date for both parties. Other customary provisions relating to the termination of the joint venture also form part of the JVA,” it added.