Chellarams Partners German Firm, Diversifies Into Dairy Production

The board of Chellaram Nigeria says has entered a new phase of its diversification agenda with the signing of a strategic partnership with Germany’s DMK Group for production, marketing, sales and distribution of dairy products across Nigeria.
The joint venture christened Chellarams DMK Ltd, according to a notice to the Nigerian Stock Exchange (NSE) by E.D Nnoruka (Mrs), Company Secretary of Chellarams, dated June 29, 2017, assured that the deal would be beneficial to the Nigerian consumer, besides the expected growth in turnover and profit.
According to the statement, the new venture, which is to manage the production, marketing, sales and distribution of a full range of dairy products across the country, thereby meeting the growing demand in the country, would ensure that the Nigerian consumer gets “the full range of products that DMK Group has deployed in other markets.”
The statement further noted that 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.”
The portfolio of existing household brands that would now be produced locally include Oldenburger, Real Milk and Regal Milk.
“To support its strong growth plans, Chellarams DMK Ltd intends in a larger distribution network by partnering with key distributors; thus establishing a strong presence across all sales channels, such as modern trade, general trade and food services,” the statement added.