Chellarams in Joint Venture Agreement with DMK Group

Chellarams Plc yesterday announced it recently completed the signing of a joint venture agreement with DMK Group (a German based diary company) to establish a new company called Chellarams DMK Ltd. Chellarams DMK Ltd is to manage the production, marketing, sales of a range of diary products across the country.

Both companies have been in a distribution agreement for 25 years. Chellarams DMK Ltd will have in its product portfolio all of DMK group's products together with brands like Oldenbuger, Regal milk and Real milk. The new company intends investing in a larger distribution network by partnering with key distributors hence establishing a strong presence across all sales channels such as modern trade, general trade and food services.

The group has asked for more time for the release of its FY 2017 financials  in order complete its joint venture arrangement with DMK group

Chellarams has been listed on the Nigerian Stock Exchange since 1978 under the conglomerates sector. The company is made up of 2 divisions industrial raw materials and consumer goods. The current portfolio of products within these two divisions comprise of Industrial Chemicals, Machinery, Ingredients for Food manufacturers, Frozen foods, Bicycles and Electronics.

The group in its FY 2016 financials had its revenue drop by 20% to N20billion while it returned to profits after recording a loss in FY 2015.