Brickworks is Australian largest brick co so they are not just supplying product they are also supplying customers , its a bloody good deal on FBR side
customers and product for a service co are the two biggest expenses
If anything FBR got the good side of the deal here, if they went direct they wouldnt be making more cash they would be making less as overheads would explode, ( i can just imagine the 4 c on that one )
Brickworks has had to offer this as right to exclusivities thats the primary reason the Co branding is materially more towards FBR
so that Brickworks brand is also not compromised as there is an understanding of risk. outside of these elements its a good deal for both Co and a smart move
Ann: FBR and Brickworks form joint venture, page-153
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