"Bel Announces Grand Opening of New Facility in India"

Bel Group, a global leader in the dairy and cheese industry, has announced the grand opening of its new facility in India. This strategic move is set to revolutionize the company's market presence and production capabilities, positioning bel for unprecedented growth in one of the world's fastest-growing economies. The new facility, located in North-Eastern China, is a state-of-the-art manufacturing and innovation hub that will significantly enhance Bel's competitive edge in the Indian market and beyond.



The acquisition of a 49% stake in Britannia’s wholly owned subsidiary Britannia Dairy Private Limited (BDPL) in November 2022, as part of a joint venture with Britannia Industries Ltd. (BIL), is a pivotal moment for Bel. This strategic partnership allows Bel to leverage Britannia’s unequaled distribution network, offering consumers in India a world-class range of delicious, nutritious, and accessible cheese products. the joint venture includes the acquisition by Bel of a 49% stake in Britannia’s wholly owned subsidiary Britannia Dairy Private Limited (BDPL), which will benefit from Britannia’s unequaled distribution network. This will help Bel to increase its scale on the Indian market and compete for leadership.

The new facility in India offers specific advantages in terms of logistics, labor, and regulatory environment. The location in India provides Bel with a strategic advantage in terms of logistics, as it allows the company to be closer to its target market, reducing transportation costs and improving delivery times. Additionally, India has a large and skilled labor force, which can help Bel to increase its production capacity and reduce labor costs. Furthermore, the Indian government’s focus on indigenization under the ‘Make in India’ initiative significantly benefits BEL. As a key supplier to the Indian armed forces, BEL is poised to gain from increased defense spending, which positively impacts the BEL share price target. The Indian government’s focus on indigenization under the ‘Make in India’ initiative significantly benefits BEL. As a key supplier to the Indian armed forces, BEL is poised to gain from increased defense spending, which positively impacts the BEL share price target.

The opening of the new facility in India significantly impacts Bel's competitive position both within the Indian market and globally. By establishing a manufacturing and innovation hub in India, Bel gains a strategic foothold in one of the world's fastest-growing economies. This move allows Bel to better serve the local market, reduce operational costs, and enhance its supply chain efficiency. The facility's location in North-Eastern China, a major milk-producing region, provides Bel with access to high-quality raw materials and a robust supply chain, further strengthening its competitive edge.

Bel's acquisition of a 70% stake in Shandong Junjun Cheese, a company with strong financial, industrial, and R&D capabilities, enables Bel to accelerate its growth ambitions in the Chinese market. This strategic acquisition positions Bel to achieve leadership in the fast-growing Chinese market, which is expected to experience double-digit annual growth in the next four years. The new facility also includes the required authorizations and licenses to operate Shandong Junjun Cheese’s factory, ensuring compliance and operational efficiency.

To leverage this new asset and capture market share, Bel has implemented several strategies. Firstly, the company aims to increase its scale on the Chinese market by utilizing the state-of-the-art R&D and production facilities of Shandong Junjun Cheese. This will enable Bel to develop and launch innovative products tailored to the Chinese consumer preferences, thereby driving growth and market penetration.

Secondly, Bel plans to strengthen its manufacturing footprint and innovation capabilities in China. The acquisition of Shandong Junjun Cheese provides Bel with the means to achieve and accelerate its leadership ambitions in the Chinese market. The company's focus on advanced technologies, including AI and cybersecurity, helps maintain its competitive edge and drive revenue growth.

Thirdly, Bel's international expansion strategy includes signing strategic partnerships with several start-ups to accelerate the development of products containing alternative proteins. This diversification strategy allows Bel to tap into new market segments and cater to the growing demand for healthier and more sustainable food options.

Finally, Bel's commitment to responsible management of price increases and the quality of its teams, brands, and financial solidity will help the company pursue its growth objectives. The company's strong financial performance and robust financial structure, with a net debt of €839 million and total equity of €1,538 million, provide the necessary resources to invest in growth initiatives and maintain its competitive position.

In summary, the opening of the new facility in India, coupled with Bel's strategic acquisitions and partnerships, positions the company to capture market share and drive growth both within the Indian market and globally. By leveraging its manufacturing and innovation capabilities, Bel is well-equipped to meet the evolving demands of consumers and maintain its leadership position in the dairy, fruit, and plant-based segments of healthy snacking.