Britannia and Bel Open ₹220 Crore Cheese Factory

10 Oct 2024 , 03:37 PM

Britannia Industries and Bel Group JV inaugurated a cheese factory in Ranjangaon, Maharashtra, two years after signing their joint venture agreement.

The JV invested ₹220 Crore in the Greenfield factory, integrated into Britannia’s existing dairy facility, producing Britannia The Laughing Cow products.

The factory has a capacity to produce 6,000 tons of natural cheese (like cheddar and mozzarella) and 10,000 tons of processed cheese (slices, cubes, blocks) annually.

The plant sources nearly 4 lakh liters of cow’s milk daily from over 3,000 farmers in Pune and surrounding areas. The factory’s modular design allows for capacity expansion with minimal additional investment.

Varun Berry, MD of Britannia, highlighted plans to innovate based on Indian consumer needs, leveraging the cheddar production for new products.

Britannia and Bel Group JV was established in December 2022, with Bel acquiring a 49% stake in Britannia Dairy, renamed as Britannia Bel Foods Private Ltd.

India’s cheese market, valued at ₹3,500 Crore and growing at 20%, presents a significant growth opportunity. Britannia aims to grow its cheese business from ₹250 Crore to ₹750-₹1,000 Crore within five years.

Bel Group expanded the reach of The Laughing Cow products to over 37,000 touchpoints in India, achieving 171% growth for innovative products like soft cheese.

The JV’s focus is on making cheese more affordable and competitive, reducing the current price premium over Amul by increasing efficiency. Future product expansion may include Bel’s fruit purees, though the current focus remains on cheese. Britannia aims to capture 25% market share in the cheese category within five years.