Chellarams Plc has concluded a joint-venture agreement with the DMK Group, a German based dairy company to manage the production, marketing, sales and distribution of a full range of dairy products across Nigeria.
According to a statement released by Chellarams, the Joint Venture which established a new company, Chellarams DMK LTD, will be well-placed to meet the growing demand in Nigeria for dairy products.
The leading Nigerian conglomerate said the venture serves as the next phase in an existing partnership between the two companies which started as a simple distribution agreement 25 years ago.
It said, “The Nigerian consumer will benefit from the full range of products that DMK GROUP has deployed in other markets.”
“The new company- Chellarams DMK LTD will have a product portfolio of established a brand that resonates with the Nigerian consumers, including Oldenburger, Real Milk and Regal Milk. The Oldenburger brand is already one of the biggest-selling import brands for UHT milk in Nigeria while Real Milk and Regal Milk are well-established brands in all households.
“To support its strong growth with key distributors; thus establishing a strong presence across all sales channels, such as modern trade, general trade and food services.”
The Management of Chellarams Plc also said the joint venture agreement caused the delay in the filing of its audited financial statements.
The company whose financial year ends 31st March said in a separate statement addressed to its shareholders and the general public that it had been granted an extension of time to file its Audited Financial Statement for the year ended 31st March 2017 by the Nigerian Stock Exchange.
“The extension of time granted is to enable the company to conclude the on-going joint venture arrangement with DMK Deutsches Milchkontor of Germany,” the company said.
“The Board of Directors and Management are confident that the Audited Financial Statement would be submitted to the Nigerian Stock Exchange not later than 31 July, 2017.”