The companies had inked the joint venture agreement on 8 August 2018.
Future Consumer and New Zealand's Fonterra Co-operative Group have agreed to wind down their 50:50 joint venture - Fonterra Future Dairy.The last few years have been challenging for the joint venture with COVID-19 causing significant disruption to the Indian market.
"Considering the impact of Covid-19 on the operations and performance of the joint venture (JV) company, it has been decided to terminate the joint venture arrangement," Future Consumer said.
Upon the termination of the joint venture agreement, the JV firm will undertake the process of winding up the operations, subject to obtaining of necessary consent and approvals that may be required from statutory/ regulatory authorities, it added.
The joint venture has 22 employees, all of which will receive appropriate entitlements, including career transition support and access to counselling.
The joint venture has delivered some important initiatives, including the launch of the Dreamery brand, a range of consumer products made using Indian milk, and distribution of Fonterra's New Zealand Anchor Food Professionals products for the foodservice sector - both of which have received positive feedback from consumers and customers.
Future Consumer is a food-led FMCG company, with considerable presence in home, personal care, and beauty categories.
Future Consumer reported net loss of Rs 56.43 crore in Q3 December 2021 as against net loss of Rs 79.81 crore in Q3 December 2020. Net sales surged 606.59% to Rs 311.82 crore in Q3 December 2021 over Q3 December 2020.
Shares of Future Consumer were down 3.01% at Rs 6.76 on the BSE.
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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)
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