Britannia signs JV with Chipita to sell ready-to-eat croissants
Indian food products corporation on Tuesday announced that it has signed a joint venture agreement with Greek food company- Chipita to produce ‘ready-to-eat’ croissants.
“We are pleased to inform you that on 27th March, 2017, the company has signed a joint venture agreement with Chipita S, a Greek company for the purpose of developing, producing and selling ready-to-eat long life filled croissants and any other products as may be agreed between the parties through a joint venture company in India namely 'Britchip Foods Ltd,” Britannia said.
The company further added that the name of the joint venture company between Britannia and Chipita would be ‘Britchip Foods Ltd’ with an estimated investment in phase I of Rs 100 crore.
“Britannia will hold 60% and Chipita will hold 40% of total share capital of the joint venture company (Agreed Equity Proportion),” the company added.
Shares of the company were trading up 1.42% to Rs 3,348.15 per share on BSE Sensex at 1439 hours.
The company said that the directors and board members shall be appointed by the companies in their 'agreed equity proportion.'
“The parties shall have the right to appoint directors in their agreed equity proportion. The parties have agreed that the formation of the joint venture company’s board of directors shall consist of a minimum of five and maximum of ten members. The parties shall have the right to appoint board members in their agreed equity proportion,” Britannia said.
Stating ‘other disclosures’ of the JV, the company said, “The Chairman of the board shall be a director nominated by Britannia.”