The Nusli Wadia-controlled Britannia Industries, which recently entered into a joint venture for dairy products with the New Zealand Dairy Board, is reviewing its investment in Dynamix Diary Industries, the supplier of milk and cheese to the biscuits major.

According to K M Goenka, chairman of Dynamix Diary, "As per the pact, Britannia had the option of hiking its stake in Dynamix to 50 per cent till September 30, 2001. This has already lapsed."

"The promoters are in discussions to acquire Britannia's stake, as they do not want to continue any longer as a strategic equity investor," Goenka added.

Last year, Britannia had picked the 11 per cent stake in Dynamix Diary for Rs 5.8 crore. Dynamix has a paid-up capital of Rs 53 crore.

Britannia, following the new arrangement with NZDB, has decided to hive off its entire dairy business into the new joint venture.

The Rs 250 crore Dynamix Diary is a closely held company with K M Goenka, the principal promoter, holding above 78 per cent stake. US-based cheese manufacturer Schiber holds another 8 per cent.

Dynamix Diary is a fully integrated company that processes cow's milk into a wide range of diary products such as cheese, butter, ghee, diary whitener, cold coffee, lassi and flavoured milk.

With a billing of Rs 100 crore, Bangalore-based Britannia is Dynamix's biggest client. Whereas exports to Schiber accounts for around Rs 60 crore, Goenka informed.

The company recorded losses of Rs 141 crore as on March 31, 2001, and expects to achieve a turnover of Rs 300 crore by the end of the current fiscal.