MUMBAI, May 26: Hindustan Lever Ltd (HLL) will promote a joint venture company, `Lever Gist Brocades Pvt Ltd’ in technical and financial collaboration with Gist Brocades International BV, a 100 per cent subsidiary of Royal Gist Brocades incorporated in the Netherlands, for the manufacture of fresh yeast at a suitable location in Maharashtra.
Gist Brocades International BV is one of the largest producer in the world of Bakers’ yeast, Pencillin and its derivative and enzymes.
The proposed joint venture aims at producing fresh yeast and instant dry yeast with technology obtained from Gist Brocades International BV which would generally conform to the global standards for Bakers’ Yeast.
Given the restraints faced by the baking industry in India due to its topography and other infrastructural disabilities, the JV will use state of the art technology to dry the yeast in a manner that enhances its shelf life.
The project is expected to start yielding commercial returns in a short span of time and the gestation period is not expected to be more than two years.
HLL has a well established network as a part of its Professional Marketing Group (PMG) for serving the bakery industry, particularly in relation to bakery fats.
The joint venture will avail of the distribution reach of the PMG of the company In payment for which a fee which would equal the royalty paid for the supply of technology to the technical and financial collaborator, viz Gist Brocades International BV.
Such distribution will be synergitic with the company’s own bakery fats business.