Eveready to Re­or­gan­ise Packet Tea Busi­ness

The Economic Times - - Brands & Companies -

Eveready In­dus­tries In­dia on Mon­day of­fi­cial­ly­de­cided to re­or­gan­ise their packet tea busi­ness ex­am­in­ing and eval­u­at­ing all al­ter­na­tives. "The board has au­tho­rised Man­ag­ing Direc­tor Am­ri­tan­shu Khai­tan to ex­am­ine and eval­u­ate all rel­e­vant as­pects and al­ter­na­tives for the re­or­gan­i­sa­tion, in­clud­ing the op­tion of con­tin­u­ing with packet tea op­er­a­tions through a wholly owned sub­sidiary," a com­pany state­ment said here.

KOLKATA

Ben­galuru: Eight years af­ter In­dia’s big­gest cook­ies maker lost its taste for part­ner­ships in foods, Bri­tan­nia In­dus­tries in­vited Greek baker Chipita to make rolls, crois­sants, and other dough prod­ucts in a joint ven­ture to meet the de­mands of a rapidly ur­ban­is­ing home mar­ket. “We’ve signed a non-bind­ing MoU and are work­ing to­wards for­mal­is­ing 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,” Bri­tan­nia man­ag­ing direc­tor Varun Berry told ET in an ex­clu­sive chat, ahead of the for­mal an­nounce­ment, which is ex­pected over the next cou­ple of weeks. The maker of Good Day and Tiger cook­ies will likely hold the ma­jor­ity stake in the ven­ture that will in­volve an ini­tial man­u­fac­tur­ing in­vest­ment of about $11 mil­lion. Berry said Bri­tan­nia will set up fa­cil­i­ties next to its ex­ist­ing plants to op­ti­mise lo­gis­tics costs, and lever­age its ex­ist­ing strengths of sup­ply­chain and distri­bu­tion net­works.

The tie-up with Chipita is the first JV the Nusli Wa­dia-pro­moted Bri­tan­nia will for­malise af­ter its tie-up with New Zealand’s Fon­terra Dairy was dis­solved in 2009 on ac­count of luke­warm mar­ket re­sponse and losses. Bri­tan­nia’s ven­ture with French food and dairy giant Groupe Danone SA was also ter­mi­nated the same year af­ter a pro­tracted le­gal bat­tle.

“This part­ner­ship gives us a long run­way for ag­gres­sive growth in a com­pletely new cat­e­gory,” Berry said. The roll­out across mar­kets in­clud­ing mod­ern trade stores as well as tier-two mar­kets is ex­pected early next year.

Ac­cord­ing to a Euromon­i­tor re­port, savoury snacks in In­dia are ex­pected to reg­is­ter a 12% com­pounded an­nual growth rate over un­til 2020, with sales reach­ing ₹ 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.

Spy­ros Theodor­opou­los, chief ex­ec­u­tive of the 800-mil­lion Chipita said that out­side of Europe, in ev­ery coun­try the com­pany op­er­ates through joint ven­tures. “The di­ver­sity and young pop­u­la­tion of the In­dian mar­ket makes us very op­ti­mistic about growth here.” Chipita has had a mi­nor pres­ence in In­dia: Over the past four years, it has been sell­ing its con­fec­tionery brand Fen­iti.

The over three-decade-old com­pany has joint ven­tures in the Mid­dle East with the Al­maraih group (with which Pep­siCo too had an ex­ist­ing part­ner­ship), and op­er­ates in Egypt as Edita Food In­dus­tries through a joint ven­ture with the Berzi group. In Saudi Ara­bia, Chipita op­er­ates as Mod­ern Food In­dus­tries (MFI) through a part­ner­ship with the Al­marai group and the Olayan Group.

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