Britannia to buy stake in West Asian business

Mumbai: Britannia Industries has entered into an in-principle agreement with a West Asia-based group to acquire equity stakes in two of the group's bakery businesses. The acquisition of shares is subject to the execution of definitive agreements to complete the transaction.

Britannia is expected to acquire a majority stake in these businesses. The West Asian company, whose name has not been disclosed, is a mass-market player in the biscuits and cookies segment, and complements Britannia's range of Marie biscuits.

Britannia Industries, a major player in the Indian foods market, has leadership position in the bakery category. Its brands include Tiger, Marie Gold, Good Day, 50:50 and Treat.

The company posted a turnover of Rs 1,818 crore for the year ended March 31, 2006, and has recorded growth of 26 per cent in the first two quarters of the current year. Rising input costs have, however, put pressure on its margins.