Britannia plans to expand its dariy business to take on ITC and Amul

Britannia Industries is planning to expand its dairy products into a detailed unit. The company also eyes at a fivefold increase in its sales.
Britannia

One of India’s largest and oldest food company, Britannia Industries is planning to expand its dairy products into a detailed unit. The company also eyes at a fivefold increase in its sales and has planned to bring back the portfolio of Tiger biscuits to increase the market share.
The food giant is also intends to create a standalone unit for its fledging milk products to compete with other competitors such as Amul and ITC. ITC has recently jumped into food space.
Speaking on the same, Varun Berry, Managing Director, Britannia said “The new division will be in addition to the existing dairy unit, which accounts for less than 5 per cent of Britannia's sales."We are putting a new team in place and hope to do what it takes to be a Rs 2,000 crore company in dairy," Berry said.
Britannia's existing dairy business consists of co-packing and selling products such as butter, cheese and curd. At Rs 400 crore, the dairy business contributes less than 5 per cent of the Bengaluru-based company's turnover. "That business is growing 10 per cent every year and will continue to run the way it's running with the current team. But if we're serious about dairy, we cannot continue on an outsourced model," Berry said. "We need to evaluate whether we should be looking at doing the end-to-end operations ourselves to take this business to five times what it is today."
The new model could involve milk procurement, processing and selling. Nusli Wadia-promoted Britannia's joint venture with New Zealand's Fonterra Dairy to sell milk and milk products, inked in 2002, was called off after seven years.
Britannia's net profit fell 19 per cent to Rs 218.6 crore in the July-September quarter from a year earlier after phasing out excise benefits. Net sales increased 12 per cent to Rs 2,191 crore.

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