There is competition brewing for Britannia, Parle, Nestle, Danone, Monginis. Dan Cake, Portugal, one of the largest butter cookies producers worldwide under the brand Danesita, is entering the Indian market through a joint venture with the Pune-based Phadnis group, an hospitality, infrastructure and IT firm, with an investment of Rs 100 crore.

The 66:34 joint venture between Dan Cake, Portugal and Phadnis Industries will set up an eight-acre production facility at Chakan Industrial Estate, near Pune and make a range of top quality bakery and confectionary products.

“Our initial investment will be Rs 100 crore to set up five production lines for a range of international top quality products such as family cakes, butter cookies, swiss rolls, cup cakes and ladyfingers,” said Kantilal Jamnadas, chairman, Dan Cake, Portugal.

He said the state-of-the-art facility will have an initial capacity to produce 10 tonnes per day in three shifts. “It will be an ultramodern, fully mechanised manufacturing unit where eventually all Danesita value-added products will be produced. We will expand the capacity with more products and investments in the next two years,” Jamnadas said. He said this was the first production unit of Dan Cake outside Portugal and the production cost would be reduced by 20 per cent.

“We will sell our products through big retail chains in the Indian market,” said Vinay Phadnis, chairman of the Phadnis Group. He said all products produced in India will be sold under the popular brand name Danesita and also exported to Asian countries. Jamnadas said the company was targeting to be in the market just in time for Diwali in November 2011. Kishore Rao, vice president, business development, Phadnis Group, said the market size of biscuits and bakery products in India was Rs 6,000 crore.

The family owned Rs 400 crore Dan Cake Portugal firm produces 45,000 tonne food products annually .