Ausnutria Dairy Corp. has signalled that it intends to set up a venture with France’s Nutribio to launch products in China.
In a statement, Hong Kong-listed infant milk group Ausnutria said that, once established, the joint venture would have a proposed initial investment of EUR1m.
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Ausnutria will invest its half of the investment in cash. Nutribio, a venture between French dairy co-ops Sodiaal and Entremont Alliance, will see its 50% come by way of the ownership of the Nactalia brand.
The capital contribution will be used for brand marketing and clinical research of products.
The venture will be established in Paris to “allow real-time connection with the dairy and paediatric food products experts and R&D centres in France and Europe”, a statement said.
The venture will allow the companies to jointly engage in R&D, in order to introduce dairy products to consumers in China.
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By GlobalDataA board of directors comprising seven members will be set up with Ausnutria Dairy appointing four members and Nutribio three. The chairman of the board will be appointed by Nutribio.
Nutribio will develop at least three to four new products every half year and sell them to Ausnutria.
The venture will then into an agreement with Ausnutria subsidiary Ausnutria Hunan to market the paediatric milk formula products, paediatric supplements, liquid milk products and adult formula milk products in China.
Finally, both parties agreed that, within six months from Nutribio becoming a wholly-owned subsidiary of Sodiaal, Ausnutria Dairy will buy a 10% equity interest in Nutribio at a price agreed between the parties.
Early in June, Sodiaal signed a draft deal to buy Entremont, a deal that could create the world’s fifth-largest dairy processor.
